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ABC is contemplating exchanging a machine used in its operations for a similar machine. ABC will exchange machines with either XYZ Inc. or DEE Company.
ABC is contemplating exchanging a machine used in its operations for a similar machine. ABC will exchange machines with either XYZ Inc. or DEE Company. The data relating to the machines are presented below. Round all percentages to 4 decimal places and any other calculations to the nearest dollar. ABC's Old Asset XYZ Inc.'s Old Asset DEF Co.'s Old Ant Original Cost of Machine Accumulated Depreciation Fair Value 5200,000 126,500 90.000 5180,000 70,000 5150,000 65,000 2 a) Astume ABC and XYZ in exchange machines and the transaction has commercial substance. If ABC Inc. exchanges its used machine and pays $25.000 in cash, determine the gain/loss ABC should recognize in this transaction b) Determine the value ABC should record for the asset received in the scenario described in the previous question Assume ABC and Der Inc exchange machines and the transaction fucks commercial substance. An exchanges its machine and also receives $22.000 cash from BUR. determine the pairios ABC should recognize in this transaction cint Round all percentages to 4 decimal places) d) Assume that you computed gain recognized by ABC to be $4.000 in (d. Determine the value ABC should record for the asset received in the scenario described in the previous
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