Saman Co exchanged a Machinery with Amar Inc. in exchange for a building. Saman also paid...

 

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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.

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a Saman Co Particular Dr Cr Purchase Account 50000 Bank Account 50000 Amount paid during ... View the full answer