Question: Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $388432 and had a net book value of $175434. The old machine had a fair value of $188555. They received $50420 boot in the deal.

What is the amount of gain or loss from this transaction?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows.Nirvana's old machine cost $292784 and had...

Q:

On February 1, 2014, Nelson Corporation purchased a parcel of land as a factory site for $247,988. An old building on the property was demolished, and construction began on a new building which was...

Q:

Nirvana Company traded in an automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $253,344 and...

Q:

Nirvana Company traded in an automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $355,114 and...

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $301,182 and...

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $204,045 and...

Q:

Question 2 0/2 pts Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine...

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana ' s old machine cost $ 3 8 7 , 0 9...

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana ' s old machine cost $ 2 0 0 , 0 0...

Q:

Nirvana Company traded in a automatic pressing machine for a manual pressing machine owned by Dodson Company. These machines have similar future cash flows. Nirvana's old machine cost $271,122 and...

Q:

The Lagoon Nebula (Fig. 18.28) is a cloud of hydrogen gas located 3900 light-years from the earth. The cloud is about 45 light years in diameter and glows because of its high temperature of 7500 K....

Q:

A $1000 bond maturing at 106 on November 1st, 2040 pays interest at 8% compounded semi-annually. Find the purchase price on May 1st, 2024 to guarantee an investor a yield of 9% compounded...

Q:

A . B . Cosmetics Product Mix Problem A . B . Cosmetics produces and sells two skincare products: Lotion and Serum. Lotion sells for $ 5 per bottle; each bottle requires: 3 ml of essential oil 5 ml...

Q:

Which project management tool uses the analogy "skateboard - bicycle - motorcycle - car"? Group of answer choices Scrum Waterfall Fate - Gate Star - gate

Q:

What predictions or trends are associated with this situation? (These can be organizational, industry-related, community relations, nation-related, etc.)

Q:

What do you learn about this situation from a literature review of scholarly and/or professional publications?

Q:

What is the central issue of the situation facing the organization?