Equipment that cost $395,700 and has accumulated depreciation of $315,900 is exchanged for equipment with a fair value of $160,000 and $40,000 cash is received. The exchange lacked commercial substance. (a) Calculate the gain to be recognized from the exchange. Gain recognized List of Accounts Save for Later Attempts: 0 of 1 used Submit AnswerCurrent Attempt in Progress Blossom Realty Company purchased a plot of ground for $1,500,000 and spent $3,500,000 in developing it for building lots. The lots were classified into Highland, Midland, and Lowland grades, to sell at $100,000, $75,000, and $50,000 each, respectively. Complete the table below to allocate the cost of the lots using a relative sales value method. No. of Grade Lots Selling Price Total Revenue % of Total Sales Highland 20 $ % $ Midland 40 % Lowland 100 % 160 $ $ Save for Later Attempts: 0 of 1 used Submit AnswerCurrent Attempt in Progress The following information relates to a patent owned by Crane Company: Cost $3,672,000 Carrying amount 1,885,000 Expected future net cash flow 1,445,000 Fair value 1,140,000 Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2019, assuming Crane will continue to use the asset in the future. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditUsing the same assumption as part (a) above, prepare the journal entry to record amortization expense for 2020 assuming the asset has a remaining useful life of 3 years at the beginning of 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit List of Accounts Using the same assumption as part (a) above, prepare the journal entry (if any) at December 31, 2020, assuming the fair value of the asset has increased to $2,033,000. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit CreditPrepare the journal entry (if any) to record the impairment of the asset at December 31, 2019, assuming Crane ceased using the patent at the end of 2019 and intends to dispose of the patent in the coming year. Crane expects to incur a $10,500 cost of disposal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit List of AccountsPrepare all entries that are necessary on April 3, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record depreciation.) (To record exchange of machineries.)Rogers Co. had a sheet metal cutter that cost $10?,000 on January 5, 2016. This old cutter had an estimated life of ten years and a salvage value of $ 13,000. On April 3, 202 1, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Rogers also received $15,000 cash. Assume that the last scal period ended on December 3 1, 2020, and that straight-line depreciation is used. Calculate the gain or loss to be recognized by Rogers Co. | :| recognized 33 I List of Accounts Prepare all entries that are necessary on April 3. 2021. [Credit account tiesare automatically indented m the amount is entered. Do not indent manually) Swifty Co. had a sheet metal cutter that cost $105,000 on January 5, 2016. This old cutter had an estimated life of ten years and a salvage value of $20,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Swifty also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. (a) Calculate the gain or loss to be recognized by Swifty Co. recognized List of Accounts Save for Later Attempts: 0 of 1 used Submit
