Realized gain or loss on the exchange, Cost Accounting

Assignment Help:

Pauline's Pastry Shop decides to remodel its offices this year. As part of the remodeling, Pauline's trades furniture with a cost of $12,000 that had been expensed in the year of purchase (Section 179 expense election) for new furniture costing $22,000. Pauline's receives a $5,000 credit (instead of a cash receipt) for the old furniture and borrows the remaining $17,000 from Easy Finance Company.
a. What is Pauline's realized gain or loss on the old furniture? Maybe 0
b. What is Pauline's recognized on the exchange?
c. What is Pauline's deferred gain on the exchange?
d. What is the basis of the new furniture?


Related Discussions:- Realized gain or loss on the exchange

Principles of marginal costing, Principles of Marginal Costing The pri...

Principles of Marginal Costing The principles of marginal costing are as given: 1. Period fixed costs are similar, for any volume of sales and production provided suc

Cash flow budget, the total (ie. aggregated) cashflows in respect to operat...

the total (ie. aggregated) cashflows in respect to operations, with details of annual cash inflows & annual outflows in respect to operations, the total (ie. aggregated) cashflo

Prepare the general journal entry to record this requisition, Erlander Comp...

Erlander Company uses a job order cost accounting system. On November 1 2013, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepar

Allocation of service department costs, Allocation of Service Department Co...

Allocation of Service Department Costs Allocation of Service Department Costs to Production departments ,Service departments are those departments that provide support to prod

Normality and that seasonality is not a factor, One item a computer store s...

One item a computer store sells is supplied by a vendor who handles only that item. Demand for that item recently changed, and the store manager must determine when to replenish it

Bin card, I need an explanation of how a bin card is done

I need an explanation of how a bin card is done

OBJECTIVES OF COST ACCOUNTING, OBJECTIVES OF COST ACCOUNTING : 1-DETERMININ...

OBJECTIVES OF COST ACCOUNTING : 1-DETERMINING SELLING PRICE 2-CONTROLING COST 3- PROVIDING INFORMATION FOR DESING MAKING 4-ASCERTAINING COSTING PROFIT 5-Facilitating preparation of

Group bonus plan, Group Bonus Plan There are specific operations or j...

Group Bonus Plan There are specific operations or jobs that require to be done collectively via a group of workers, as an example of, continuous production work flows in asse

Using the dupont formula for rate of return on investment, The vice preside...

The vice president of operations of six layer computer Inc. is evaluating the performance of two divisions organized as investments centers. Invested assets and condensed income st

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd