Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows Clark Co. Keys...
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Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows Clark Co. Keys Inc. a Equipment given up Equipment (original cost) $90,000 $105,000 Accumulated depreciation 30,000 36,000 Fair value 54,000 72,000 Cash exchanged 18,000 (18.000) Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. Exchange has Commercial Substance Exchange Lacks Commercial Substance a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. Account Name To record acquisition of equipment. To record acquisition of equipment. # # # # # # Dr. 0 0 0 0 0 0 OOO DO 0 0 0 0 Cr. 0 0 0 0 0 OOOO0 Reporting an Asset Exchange Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Clark Co. Keys Inc. Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. d. C Equipment given up Equipment (original cost) $90,000 $105.000 Accumulated depreciation 30,000 36,000 Fair value $4,000 72.000 18,000 Cash exchanged (18,000) Exchange has Commercial Substance Exchange Lacks Commercial Substance c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance.. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. d. Account Name To record acquisition of equipment. To record acquisition of equipment. # # # # # # Dr. 0 0 0 0 0 0 ooooo 0 0 0 0 Cr. 0 0 0 0 0 0 0 0 0 0 Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows Clark Co. Keys Inc. a Equipment given up Equipment (original cost) $90,000 $105,000 Accumulated depreciation 30,000 36,000 Fair value 54,000 72,000 Cash exchanged 18,000 (18.000) Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. Exchange has Commercial Substance Exchange Lacks Commercial Substance a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. Account Name To record acquisition of equipment. To record acquisition of equipment. # # # # # # Dr. 0 0 0 0 0 0 OOO DO 0 0 0 0 Cr. 0 0 0 0 0 OOOO0 Reporting an Asset Exchange Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Clark Co. Keys Inc. Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. d. C Equipment given up Equipment (original cost) $90,000 $105.000 Accumulated depreciation 30,000 36,000 Fair value $4,000 72.000 18,000 Cash exchanged (18,000) Exchange has Commercial Substance Exchange Lacks Commercial Substance c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance.. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. d. Account Name To record acquisition of equipment. To record acquisition of equipment. # # # # # # Dr. 0 0 0 0 0 0 ooooo 0 0 0 0 Cr. 0 0 0 0 0 0 0 0 0 0
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