Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20 million, for some highly specialized machinery from Biden Corp. In addition, Harris Ltd. also paid $5 million along with the land in a transaction holding commercial substance to obtain the machinery. Required: What will be the cost of the specialized machinery in the financial statements of Harris Ltd.?

Q: Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price,…

A: Based on the fair value of the land building as required in one we divided the cost in ratio of fair…

Q: On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the ordinary…

A: GIVEN   On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the…

Q: Zenith Corporation sells some of its used store fixtures for $3,968. The acquisition cost of the…

A: In case of Investing section the value of this transaction appears at $ 3968 being sale price of…

Q: (i)Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has…

A: The fair value is the worth of the asset which is determined when it is available for sale. This…

Q: f a company exchanges an asset with a book value of $260,000, an original cost of $500,000, and a…

A: Answer : gain recognized on exchange of asset = $ 40,000

Q: Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a…

A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…

Q: Hanson Ltd provides consulting services to The Bowen Ltd. Rather than paying in cash, it is agreed…

A: When customer promises to pay consideration other than in cash form , then entity should measure its…

Q: Bryant Inc. and Rizzo Co. have an exchange that lacks commercial substance. The asset given up by…

A: An asset is a monetary resource that an individual, corporation, or government owns or controls in…

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: 1.

Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…

A: Allocation of Purchase Price Appraised Value Percentage of Total Appraised Value Total Cost of…

Q: Karlene Company and Erika Company are fuel oil disti ers. To facilitate the delivery of oil to…

A: Concept of Valuation of Inventory

Q: According to IAS 16 Property, Plant and Equipment, at what value should the building currently owned…

A: IAS 16 Property, Plant and Equipment specifies that exchange of items of property, plant &…

Q: The Oscar Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000

Q: Zenith Corporation sells some of its used store fixtures for $3,757. The acquisition cost of the…

A: In the case of the sale of a fixed asset, only the amount received in cash by the transaction is…

Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…

A: Proof required of purchase of the above assets are :  Invoice / receipt : It is a document which…

Q: On January 1, 20X2, Sansa Company purchases two (2) separate sets of assets and activities from…

A: a) Companies acquire other companies for various reasons and one of the reason is growth strategy.…

Q: ABC Company acquired a property for speculation purposes with the intention of selling it at a…

A: When an asset satisfies the criteria of an investment property, it is first recorded as a capital…

Q: ompany and Albert Company agreed to exchange tractor trailers. Information relating to these assets…

A: The asset is considered as something that an investor buys with an intention of making income from…

Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…

A: GIVEN   The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…

Q: Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000,…

A: Journal entries are the primary reporting of transactions occurring in the business.

Q: PURCHASE PRICE

A: An asset is recorded at the fair value price on the date when it is acquired. Generally, the journal…

Q: Bro exchanged a delivery truck costing P1,000,000 for a parcel of land. The truck had a carrying…

A: Assets can be purchased in exchange of other assets and in addition of some cash, but the criteria…

Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…

A: Goodwill is an intangible asset of a company which exists due to the company’s customer base, brand…

Q: Jeremiah Corporation has provided the following information on intangible assets as follows: a. A…

A: Amortization- All assets which cannot be seen is called intangible assets. These assets are not…

Q: Bella company entered into an exchange agreement of exchanging its equipment for two pickup…

A: In the case of an exchange, the new asset should be recorded at its fair value.

Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…

A: Consolidation is the merger of two or more entities where one large company acquire share capital of…

Q: Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has…

A: As per IAS 16, when an PPE is acquired in exchange for a non-monetary items or a combination of…

Q: On July 1, 2021, PAOLO exchanged its non-monetary asset (equipment) with YEN’s non-monetary asset…

A: This question deals with the IAS 16 "Property plant and equipment". When non monetary asset is…

Q: Reck Company is considering the acquisition of Clock Inc.  To assess the amount it might     be…

A: Goodwill is the term which is defined as the intangible assets that arise when the buyer acquire the…

Q: Ermon Company determined that its electronics division is a cash generating unit. The entity…

A: Impairment loss is the loss in the value of asset Impairment loss = Book Value - Fair market Value…

Q: Brooks LLC exchanged machinery with an appraised value of $4,600,000, a recorded cost of $7,200,000…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…

A:

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Calculate the amount at which Calaveras value the pickup trucks.

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: Since multiple subparts are posted, only the first three will be answered.

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Commercial Substance: If there is a change in future cash flow of the business as result of business…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: in the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had…

A: Tax basis of new building = (Cost of old building - accumulated depreciation) + Cash paid

Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…

A: Journal is a primary book where transactions are originally recorded. Further, a journal entry is…

Q: Jeremiah Corporation has provided the following information on intangible assets as follows: a. A…

A: Amortization is a way of lowering the book value of asset over its useful life to correctly estimate…

Q: Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: The carrying value of an asset is the value at which the company records the asset in its balance…

Q: ABC Co. traded a used equipment with a book value of P6,800 and a fair market value of P9,200 for a…

A: Here the problem relating to the exchange of fixed assets.  To record the transaction for old…

Q: ABC Company exchanged equipment with DEF Corp. The following data were available: ABC's equipment…

A: Note: When commercial substance exists in the exchange of assets transaction, new assets are…

Q: Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A:

Q: Prince Company and Albert Company agreed to exchange tractor trailers. Information relating to these…

A: The asset is considered as something that an investor buys with an intention of making income from…