Assume the same facts as in E 10-16 except that Bronco received $10,000 from the owner of

Question:

Assume the same facts as in E 10-16 except that Bronco received $10,000 from the owner of the equipment to complete the exchange.

Data from in E 10-16

The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a fair value of $150,000. Bronco paid the owner of the equipment $10,000 to complete the exchange which has commercial substance.

Required:
1. What is the fair value of the equipment?
2. Prepare the journal entry to record the exchange.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 9781264134526

11th Edition

Authors: David Spiceland

See More Books

Question Posted: Jun 01, 2022 07:40 AM

See More Questions

Assume the same facts as in Problem 6-40 except, on January 2 of the current year, Gamma Corporation sells all property other than cash to Acquiring Corporation for FMV. Gamma pays off the accounts...
Assume the same facts as in Q11- 16. Net assets that were undervalued at acqui-sition have a remaining estimated life of 10 years ( assume no residual value and straight- line depreciation). There is...
Assume the same facts as in Exercise 5. But now you expect your tax rate on ordinary income to decline to 20% in year 3. How do your answers in Exercise 5 change? Would you make the Section 83(b)...
Harvold Company's quality cost report is to be based on the following data: Test and inspection of incoming materials. $71,000 Supplies used in testing and inspection . Re-entering data because of...
1. Which type of stock or combination of stocks would be appropriate for Shannel? Develop your answer in terms of Shannel's risk tolerance, time frame, and goals. 2. What role should cyclical and...
After it is written and time has passed, will an interest rate swap always be equal to zero value? Explain.
Assume the same facts as in QS C-8 except that the stock acquired represents 40% of ORD Corp.s outstanding stock. Also assume that ORD Corp. paid a $100,000 dividend on November 1, 2008, and reported...
Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Cumulative total net cash earnings for the past five years of $850,000 includes...
If the vield percentage is 70.00% and you have 200 pounds of as-purchased beef in your refrigerator, how many 4-ounce portions of beef can you serve? 800 240 560 None of the above
Time cards are being entered into the accounting system for four employees. The costs for Employee 1 are to be billed to job cost code 302.01.01100L. Ten hours of Employee 2 time is to be billed to...
In February 2024, Culverson Company began developing a new software package to be sold to customers. The software allows people to enter health information and daily eating and exercise habits to...
Refer to the situation described in BE 1015. Answer the questions assuming that the exchange lacks commercial substance. Data from in BE 10-15 Refer to the situation described in BE 1014. Answer the...
How would focusing on total life cycle costs call for a different treatment of research and development costs than is made for financial accounting? LO1
From the following electrochemical cells write: (a) the electrode half reactions for oxidation and reduction (b) the overall cell reaction (c) the NERNST equation for the emf for each of the cells...
Use the range rule of thumb to identify the values that are significantly low, the values that are signficantly high, and the values that are neither significantly low nor significantly high. A test...
On January 1, Year 1, Handy Company (Handy) purchased 70% of the outstanding common shares of Dandy Limited (Dandy) for $11,900. On that date, Dandys shareholders equity consisted of common shares of...
CarFind Inc. showed the following equity information at December 31, 2019. Common shares, unlimited shares authorized; 4,900,000 shares issued and outstanding Retained earnings $1,045,000 1,385,000...
Cell Phone Radiation Listed below are the measured radiation rates (in W/kg) corresponding to these cell phones: iPhone X, iPhone 7, Google Pixel, Samsung Galaxy 58, OnePlus 5, Motorola VE465, LG G3,...
Which statement below is correct? a. Real property is depreciated using the half-year convention. b. Residential real estate is depreciated over a 39-year life. c. One-half month of depreciation is...
Gopher, Inc. developing its upcoming budgeted Costs of Quality (COQ) with the following information: Expense Item Budget Raw Materials Inspection $ 15,000 EPA Fine 200,000 Design Engineering 15,000...
Ajax Company appropriately accounts for certain sales using the installment sales method. The perpetual inventory system is used. Information related to installment sales for 2011 and 2012 is as...
On August 31, 2011, the Silva Company sold merchandise to the Bendix Corporation for $500,000. Terms of the sale called for a down payment of $100,000 and four annual installments of $100,000 due on...
Mulcahey Builders (MB) remodels office buildings in low-income urban areas that are undergoing economic revitalization. MB typically accepts a 25% down payment when they complete a job and a note,...
Current Attempt in Progress On July 3 1 , 2 0 2 2 , Crane Compary had a cash balance per books of $ 6 , 2 4 5 . 0 0 . The statement from Dakata State Bark on that date showed a balance of $ 7 , 7 9 5...
Cede & Co. expects its EBIT to be $89,000 every year forever. The firm can borrow at 5 percent. Cede currently has no debt, and its cost of equity is 10 percent. If the tax rate is 35 percent, what...
In the Marriott example, one discussion point considered when a firm might use a single hurtle rather than different divisional or business unit rates. When a single rate is used and the divisions...

Assume the same facts as in E 10-16 except that Bronco received $10,000 from the owner of

Question:

Step by Step Answer:

Requirement 1 Fair value of land given Cash received Fair value o...View the full answer

Intermediate Accounting

Students also viewed these Business questions