1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Marina CMI [18]
3 years ago
13

Pronghorn Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer worth $3,498. Pr

onghorn also paid $530 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance.
Business
1 answer:
lana [24]3 years ago
6 0

Answer:

Truck:

Cost = $20,000

Accumulated depreciation = $18,000

Small computer worth = $3,498

Paid in transaction = $530

The Journal entry is as follows:

Equipment/Computer A/c                       Dr. $3,498

Accumulated depreciation-Truck  A/c   Dr. $18,000

To Truck                                                                        $20,000

To Gain on disposal of truck                                        $968                                        

To cash                                                                          $530

(To record the exchange)

You might be interested in
According to the text, there are four different aspects of a decision that a business should evaluate in order to___ maximize pr
inna [77]

Answer: Legal, public relation, safety risk, financial.

Explanation:

The above are different aspects of a decision in order to maximize profit and be a good corporate citizen.

Financial decision taking with respect to capital structure.

Legal- legal rights and responsibilities.

Safety risk assessment and mitigation of safety risk.

Public relation communication that are strategic that builds mutually beneficial relationships.

3 0
3 years ago
Dole, the sole owner of Enson Corp., transferred a building to Enson. The building had an adjusted tax basis of $35,000 and a fa
faust18 [17]

Answer:

C. $40,000

Explanation:

For computing the amount of the gain recognized, first we have to calculate the gain recognized based on the adjusted basis

= Cash received + fair market value of the stock - adjusted cash basis

= $40,000 + $60,000 - $35,000

= $100,000 -$35,000

= $65,000

But the cash is received for $40,000. So, only $40,000 of gain would be recognized. As in the case of transfer, if the amount is received other than the stock so the amount which is received is recognized as a gain i.e $40,000

4 0
3 years ago
Why the feedback form is so important for the trainer and the training itself?​
SashulF [63]

Answer:

It tells on how he or she can improve his ways of training based on the previous people he or she trained feedbacks.

5 0
3 years ago
Read 2 more answers
How are resources allocated in a traditional economy?
mote1985 [20]
Traditional morals the system of production of material wealth
4 0
3 years ago
Read 2 more answers
The United States government sometimes has to interfere with the economy. Why would the government initiate an antitrust suit ag
Ilya [14]

Answer:

c

Explanation:

8 0
3 years ago
Other questions:
  • Google's mission statement is “to organize the world's information and make it universally accessible and useful.” When the CEO,
    6·1 answer
  • If the equilibrium interest rate in the money market is 5%, then at an interest rate of 2% sellers of interest-bearing financial
    9·1 answer
  • Karolina owns a small diner, where she works full-time in the kitchen. Her total revenue last year was $100,000, and her rent wa
    5·1 answer
  • Teagan wants to buy a new refrigerator. The refrigerator costs $1650. Teagan decides to finance the refrigerator for 24 months a
    14·1 answer
  • Which statements are true? Check all that apply: C-corporations are subject to double taxation. LLCs are best for taking venture
    10·1 answer
  • Online Gourmet is an online business that provides customers with recipes and all the ingredients needed to prepare a meal. This
    13·1 answer
  • Determine which startegic review process element is described below.
    8·1 answer
  • If all investors become more risk averse the SML will _______________ and stock prices will _______________. Multiple Choice hav
    5·1 answer
  • The idea that only the most efficient workers will depart in response to a wage cut is called ________.
    12·1 answer
  • the amount of federal income taxes withheld from an employee's gross pay is recorded as a(n) Opayroll expense Oliability O contr
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!