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choli [55]
4 years ago
10

Campbell Corp. exchanged delivery trucks with Highway, Inc. Campbell's truck originally cost $23,000, its accumulated depreciati

on was $20,000, and its fair value was $5,000. Highway's truck originally cost $23,500, its accumulated depreciation was $19,900, and its fair value was $5,700. Campbell also paid Highway $700 in cash as part of the transaction. The transaction lacks commercial substance. What amount is the new book value for the truck Campbell received?
Business
1 answer:
iragen [17]4 years ago
3 0

Answer:

equipment    3,700

Explanation:

First we calcualte the values of the machine given up:

<u>traded-out assets</u>

purchased  23000

depreciation <u>20,000 </u>

book value   3,000

fair value   5,000

gain on disposal   2,000

This gain would be recognzie if there was commercial substance. In this case we don't have commercial substance. So it is deffered.

Value given up forthe new equipment:

cash                   700

traded-out        <u>5,000 </u>

total value         5,700

We subtract the deffered gain on disposal to get the accounting value for the new equipment:

deferred gain       (2,000)

accounting value 3,700

The machine will enter the accounting with 3,700

journal entry

equipment    3,700

acc del        20,000

   equipment            23,000

  cash                             700

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A customer of RoughEdge Sharpeners alleges that RoughEdge's new razor sharpener had a defect that resulted in serious injury to
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You have $12,000 to invest and would like to create a portfolio with an expected return of 9.75 percent. You can invest in Stock
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Answer:

The multiple choices are:

$5,589.04

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Explanation:

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from the return perspective

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K=12000-L

Substitute for K in the second equation

0.0975=(12000-L)/12000*0.0805+L/12000*0.117

0.0975=(966-0.0805L)/12000+0.117L/12000

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1170 -966=0.0365L

204=0.0365L

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Termination of Co-ownership by Partition

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After intestate succession partakes in possession by a set of people, they become tenants in general . she does not, then when she goes, her share transfers to her descendants.

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Arthur, a production manager, knows that some of his employees are upset with a new corporate policy that eliminates a tuition r
vlada-n [284]

Answer:

Arthur should choose a handful of employees according to their abilities and provide them with the training and pay raise.

Explanation:

According to my research on different managerial roles and responsibilities, I can say that based on the information provided within the question to eliminate this behavior Arthur should choose a handful of employees according to their abilities and provide them with the training and pay raise. By doing this the employees will increase productivity in order to be chosen.

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