Business, 05.05.2020 09:35 valeriekbueno

Biegel Corporation purchase equipment for $120,000 on May 1, 2020. Bridge Four depreciates the equipment over 10 years using the double declining balance method of depreciation. Biegel estimates the equipment will have a salvage value of $5,000 at the end of the useful life. On December 31, 2021, Biegel Corp entered into a transaction to exchange the equipment with another company. At the time of the exchange, the old equipment has an estimated fair market value of $90,000 and Biegel paid cash of $15,000.

A.) Which of the following statements is true?

The old asset has a book value of $76,800 on the day of the exchange.

The old asset has accumulated depreciation of $23,000 on the day of the exchange.

The old asset has accumulated depreciation of $19,167 on the day of the exchange.

The old asset has a book value of $83,200 on the day of the exchange.

The old asset has a book value of 120,000 on the day of the exchange.

The old asset has an accumulated depreciation balance of $20,800 on the day of the exchange.

The old asset has accumulated depreciation of $19,200 on the day of the exchange

None of the other answer choices is correct.

B.) Which of the following statements is true if the exchange has commercial substance?

The exchange will result in a loss of $9,200.

The new fixed asset will be recorded at $105,000.

The exchange will result in a gain of $13,200.

The journal entry to record the exchange will not include a gain or a loss.

None of the other answer choices is correct.

C.) Which of the following statements is true if the exchange lacks commercial substance?

The new fixed asset will be recorded with a cost of $98,200

The journal entry to record the exchange will result in a gain of $6,800

The journal entry to record the exchange will result in a gain of $1,886.

The journal entry to record the exhange will result in a loss of $1,150.

The new fixed asset will be recorded with a cost of $105,000

The journal entry to record the exchange will result in a gain of $971.

The journal entry to record the exchange will result in a gain of $1,650.

The journal entry to record the exchange will result in a loss of $9,200.

The journal entry to record the exchange will result in a gain of $850

The new fixed asset will be recorded with a cost of $90,000

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:10

The green fiddle has declared a $5 per share dividend. suppose capital gains are not taxed, but dividends are taxed at 15 percent. new irs regulations require that taxes be withheld at the time the dividend is paid. green fiddle stock sells for $71.50 per share, and the stock is about to go ex-dividend. what will the ex-dividend price be?

Answers: 2

Answer

Business, 22.06.2019 12:50

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be:

Answers: 2

Answer

Business, 22.06.2019 23:40

Gdp has grown in a country at 3% per year for the last 20 years. the labor force has grown at 2% per year and the quantity of physical capital has grown at 4% per year. a 1% increase in average physical capital per worker (other things equal) raises productivity by 0.3%. average education has not changed. how much has growing physical capital per worker contributed to productivity growth in this country? choose the correct answer from the following choices, and then select the submit answer button. answer choices 0.3% 0.6% 3.0% 6.0%

Answers: 1

Answer

Business, 23.06.2019 01:40

During a liquidation, a partner's capital account balance drops below zero. what should happen? select one: a. the deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses.b. the partner with a deficit should contribute enough assets to offset the deficit balance if he is solvent.c. the other partners should contribute enough assets to offset the amount of deficit if the partner with a deficit is insolvent.d. both b & c

Answers: 3

Answer

You know the right answer?

Biegel Corporation purchase equipment for $120,000 on May 1, 2020. Bridge Four depreciates the equip...

Questions