Instructions Prepare the journal entry(ies) necessary to record this exchange. assuming mercial substance, and (b) lacks commercial substance. Cannondale's fiscal year ends on Decembol. change (a) has com- Jan. 30 and depreciation has been recorded through December 31, 2019. 510.19 (LO 3) (Nonmonetary Exchange) Arruza Company exchanged equipment used in its my Mar. 10 facturing operations plus $3,000 in cash for similar equipment used in the operations of LoBianco can Mar. 20 pany. The following information pertains to the exchange. Arruza Co. LoBianco Co. $28,000 $28,000 May 18 Equipment (cost) 10,000 Accumulated depreciation 19,000 Fair value of equipment 12,500 15,500 Cash given up 3,000 June 23 Instructions a. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. Instruction 0. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. To oulay Prepare gen E10.20 (LO 3) (Nonmonetary Exchange) Ashbrook Inc. has negotiated the purchase of a new E10.23 (LO piece of automatic equipment at a price of $8,000 plus trade-in, f.o.b. factory. Ashbrook Inc. paid subsequent $8,000 cash and traded in used equipment. The used equipment had originally cost $62,000; it had the balance a book value of $42,000 and a secondhand fair value of $47,800, as indicated by recent transactions Instruction payment of $1,100. involving similar equipment. Freight and installation charges for the new equipment required a cash For each of (E) in the Instructions a a. Prepare the general journal entry to record this transaction, assuming that the exchange has com- mercial substance. b. b. Assuming the same facts as in (a) except that fair value information for the assets exchanged is not C. determinable, prepare the general journal entry to record this transaction. d. E10.21 (LO 4) Groupwork (Analysis of Subsequent Expenditures) Donovan Resources Group e. has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company's plant asset book value is currently $800,000, as indicated below. f. g Original cost Accumulated depreciation $1,200,000 400,000 bera egglipp argueg n Book value $ 800,000 co bangleas h. roven bad offer E10.24( During the current year, the following expenditures were made to the plant facility. a book v a. Because of increased demands for its product, the company increased its plant capacity by building a new addition at a cost of $270,000. b. The entire plant was repainted at a cost of $23,000. c. The roof was an asbestos cement slate. For safety purposes, it was removed and replaced with a wood shingle roof at a cost of $61,000. Book value of the old roof was $41,000. Depreci vitalanti