Question
Henry Company acquires equipment (EQ 14) in exchange for equipment (EQ 9) plus cash of P160,000. The carrying and fair value of EQ14 and EQ9
Henry Company acquires equipment (EQ 14) in exchange for equipment (EQ 9) plus cash of P160,000. The carrying and fair value of EQ14 and EQ9 at the date of the exchange are as follows:
EQ 14EQ 9
EquipmentP500,000P320,000
Accumulated depreciation175,000180,000
Fair value of equipment335,000185,000
The configuration (risk, timing and amount) of the cash flows are determined to be significantly different.
- The initial cost of the new equipment is?
- The gain (loss) recognized in relation to the exchange is?
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Accounting Information Systems
Authors: Robert Hurt
4th Edition
78025885, 78025884, 9781259293795 , 978-0078025884
