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Take Test: Q9-CH10
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Instructions
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Description |
Non-Monetary Exchanges. This quiz will close at 11:00 PM on Friday, June 21st. You will be given (2) attempts to complete this quiz and your highest grade will be reported in the grade book. The solutions will become available on Blackboard at 11:00 PM after the assessment closes. |
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Instructions |
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Multiple Attempts |
This Test allows 2 attempts. This is attempt number 1. |
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Force Completion |
This Test can be saved and resumed later. |
Question 1
1.
Use the following information to answer the next (6) questions:
Turkey Inc. is trading a machine which had cost $70,000 and had accumulated depreciation of $40,000 for another fixed asset. For each of the following independent situations, determine the amount to be capitalized for the new fixed asset that Turkey is acquiring and the gain or loss to be recognized at the time of the exchange. *If there is a gain record your answer as a positive number; if there is a loss, record your answer in parenthesis (). If there is NO gain or loss, type in NE.
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Capitalized Cost of New Asset |
$ Gain/Loss |
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1. Turkey traded the old machine for a newer machine with a fair value of $45,000 and received $5,000 on the exchange. The exchange has commercial substance. |
$_blank 1 __ |
$_blank_2__ |
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2. Same as #1, except the exchange lacks commercial substance. |
$_blank_3__ |
$__blank_4_ |
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3. Same as #1 except the exchange lacks commercial substance; and instead of receiving cash, Turkey paid $4,000 cash. |
$_blank_5__ |
$_blank_6_ |
a. For scenario #1, Determine the original cost of the new machine that Turkey should record on its balance sheet on the day of the exchange. $[Blank_1]
Answer
1 points
Question 2
1.
Using the information presented in #1 above, answer the following:
b) For scenario #1, determine the Gain or Loss that Turkey should report on their Income Statement as a result of this exchange:
$[Blank_2]
Answer
0.5 points
Question 3
1.
Using the information presented in #1 above, answer the following:
c. For scenario #2, determine the original cost of the new asset Turkey should report on their balance sheet after this exchange: $[Blank_3]
Answer
1 points
Question 4
1.
Using the information presented in #1 above, answer the following:
c. For scenario #2, determine the Gain/Loss Turkey should report on their income statement as a result of this exchange: $[Blank_4]
Answer
1 points
Question 5
1.
Using the information presented in #1 above, answer the following:
c. For scenario #3, determine the original cost of the new asset Turkey should report on their balance sheet after this exchange: $[Blank_5]
Answer
1 points
Question 6
1.
Using the information presented in #1 above, answer the following:
c. For scenario #3, determine the Gain/Loss thatTurkey should report on their income statement as a result of this exchange: $[Blank_6]
Answer
0.5 points
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