Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to Amar for this exchange. Other details of the transaction are provided below: Saman Co. equipment: Cost Accumulated depreciation Fair value $950,000 150,000 600,000 Amar Inc. Building: Cost Accumulated depreciation Fair value $750,000 180,000 550,000 Required- a) Prepare the journal entry in the books of both companies, assuming both are publicly traded. b) Assuming now that Saman is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Saman Co. Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid 50,000 to Amar for this exchange. Other details of the transaction are provided below: Saman Co. equipment: Cost Accumulated depreciation Fair value $950,000 150,000 600,000 Amar Inc. Building: Cost Accumulated depreciation Fair value $750,000 180,000 550,000 Required- a) Prepare the journal entry in the books of both companies, assuming both are publicly traded. b) Assuming now that Saman is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Saman Co.
Expert Answer:
Answer rating: 100% (QA)
a Saman Co Particular Dr Cr Purchase Account 50000 Bank Account 50000 Amount paid during ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Elm Limited had the following transactions and events during the year ended December 31, 2013. a. In December 2013, Ami, the owner of Elm, paid for a parcel of land along with a warehouse on behalf...
-
You have two clients in the construction industry that are considering exchanging machinery with each other. Ames Construction has decided to market its services to clients who need major...
-
The system shown consists of 3 cables. For example; cable C12 joins points 1 and 2. The coordinates of point 1 are (6.4, 0, 0) m, those of point 2 are (0, 9.5, -6.1) m, and those of point 3 are (0,...
-
How many orders of the entire visible spectrum (400700 nm) can be produced by a grating of 500lines/mm?
-
An opinion column in the Wall Street Journal argues that instead of debating how to expand Medicare coverage, politicians should focus on fixing the fatal financial flaws in the existing program that...
-
Explain what is meant by dynamic world planning.What is meant by probabilistic planning? What is the difference between probabilistic planning and nondeterministic planning?
-
Archer Construction Company began work on a $420,000 construction contract in 2012. During 2012, Archer incurred costs of $278,000, billed its customer for $215,000, and collected $175,000. At...
-
Assume you are the owner of a small CPA practice in a major metropolitan area. You have six professional employees, of which 2 are relatively new CPAs (recent graduates from UMUC), and an experienced...
-
Find a current computer ad in a magazine or newspaper or online. Identify each of the featured items in the ad, show its position in the system block diagram of Figure 11.1, explain how it operates,...
-
The tech industry is an unpredictable space for employers. The current state of the industry means market-related salaries (at a minimum) are a must, while company benefits and firms that promote a...
-
Nash Corporation purchased a new machine for its assembly process on August 1, 2025. The cost of this machine was $122,700. The company estimated that the machine would have a salvage value of...
-
The cost of the machine is $12,123. The CCA rate is 27%. After 8 years, the machine is sold for $2,177. If it is the only asset in the asset class and the tax rate is 37%, what is the TRTL? (Assume...
-
Braverman Company has two manufacturing departments Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $ 2 0 . 0 0 per direct labor - hour and 1 2 0 % of...
-
Determine the price of a $380,000 bond issue under each of the following independent assumptions: Note: Use tables, Excel, or a financial calculator. Round your intermediate calculations and final...
-
Braverman Company has two manufacturing departments-Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $24.00 per direct labor-hour and 120% of direct...
-
The purpose of this Lab 05 is to demonstrate your understanding to define the scope of the work and Business data model. The Scope of the Work The scope of the work determines the boundaries of the...
-
How has the too-big-to-fail policy been limited in the FDICIA legislation? How might limiting the too-big-to-fail policy help reduce the risk of a future banking crisis?
-
Jenny earns $34,500 in 2012. Calculate the FICA tax that must be paid by: Jenny: ..............................Soc,Sec. ..................$______________...
-
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $125 per week for 48 weeks during the current year. a. What is the employer's portion...
-
Frederick (Freddy) Freeweights (age 42) owns and operates a health club called ''Treadmills West.'' The business is located at 4321 Arnold Street, Alpine, CA 91901. Freddy had the following income...
-
Two machines \(X\) and \(Y\) were used to produce two types of plastic polymers, PPET and PAMI. The polymers were produced using materials BA and PP. The production was run 3 times. The \(y\) values...
-
The effect on engine wear of oil viscosity, temperature, and a special additive was tested using a \(2^{3}\) factorial design. Given the following results from the experiment, Interpret the effects...
-
An engineering student wanted to know which factors influence the time (in seconds) for his car to go from 0 to 30 to 0 miles per hour. Factor \(A\) was the launch, which was either no wheel spin or...
Study smarter with the SolutionInn App