Question 2 (9 points) On January 1, 2021 Al-Quds Co. exchanged productive assets with Birzeit Co.....
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Question 2 (9 points) On January 1, 2021 Al-Quds Co. exchanged productive assets with Birzeit Co.. Al-Quds's asset is referred to below as "Asset A", and Birzeit's is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Original cost Acc. dep. (to date of exchange) Fair value at date of exchange Cash received Cash paid Required Prepare the exchange entry for both companies. Al-Quds Company (Asset A) Dr. Assol B 110,000 Dr Pr Cash 30,000 Dr Gain 60,000 Al-Quds Company (Asset A) $200,000 90,000 150,000 30,000 C6 Assel A 200,000 cr. Birzeit Company (Asset B) $100,000 30,000 ? 30,000 100,00 Birzeit Company ((Asset B) Dr Assel Cr Assel $1,000 Cr Cash 30,000 100,000 Question 2 (9 points) On January 1, 2021 Al-Quds Co. exchanged productive assets with Birzeit Co.. Al-Quds's asset is referred to below as "Asset A", and Birzeit's is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Original cost Acc. dep. (to date of exchange) Fair value at date of exchange Cash received Cash paid Required Prepare the exchange entry for both companies. Al-Quds Company (Asset A) Dr. Assol B 110,000 Dr Pr Cash 30,000 Dr Gain 60,000 Al-Quds Company (Asset A) $200,000 90,000 150,000 30,000 C6 Assel A 200,000 cr. Birzeit Company (Asset B) $100,000 30,000 ? 30,000 100,00 Birzeit Company ((Asset B) Dr Assel Cr Assel $1,000 Cr Cash 30,000 100,000
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Answer In the instance of an exchange of assets that lack commercial substance the exchange ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Posted Date:
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