Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.
Carlos Arruza Co. Tony LoBianco Co.
Equipment (cost) $28,000 $28,000
Accumulated depreciation 19,000 10,000
Fair value of equipment 12,500 15,500
Cash given up 3,000
a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.
Answers: 2
Business, 21.06.2019 13:30
The chart shows the pricing history for two items. which person saved the most money by buying a product at the right time? carrie, who waited six months to buy a game system timothy, who bought a game system right away because it was popular eugene, who bought a phone immediately for fear they would sell out marlene, who waited six months to buy a phone
Answers: 3
Business, 22.06.2019 21:30
Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?
Answers: 1
Business, 22.06.2019 21:40
Engberg company installs lawn sod in home yards. the company’s most recent monthly contribution format income statement follows: amount percent of sales sales $ 80,000 100% variable expenses 32,000 40% contribution margin 48,000 60% fixed expenses 38,000 net operating income $ 10,000 required: 1. compute the company’s degree of operating leverage. (round your answer to 1 decimal place.) 2. using the degree of operating leverage, estimate the impact on net operating income of a 5% increase in sales. (do not round intermediate calculations.) 3. construct a new contribution format income statement for the company assuming a 5% increase in sales.
Answers: 3
Business, 23.06.2019 05:10
To use google as main search engine, which internet browser can i use
Answers: 2
Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash f...
Mathematics, 16.12.2020 19:20
Advanced Placement (AP), 16.12.2020 19:20
Mathematics, 16.12.2020 19:20
Biology, 16.12.2020 19:20
Mathematics, 16.12.2020 19:20
Mathematics, 16.12.2020 19:20
Mathematics, 16.12.2020 19:20
Medicine, 16.12.2020 19:20
Computers and Technology, 16.12.2020 19:20
Mathematics, 16.12.2020 19:20
History, 16.12.2020 19:20