Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4.assume that a machine, with a carrying amount of

4.Assume that a machine, with a carrying amount of $45,000 (cost: $50,000 and accumulated depreciation:...

50.1K

Verified Solution

Question

Accounting

image

4.Assume that a machine, with a carrying amount of $45,000 (cost: $50,000 and accumulated depreciation: $5,000), is given in exchange for another similar machine. The exchange is considered to have no impact on future cash flows (or present value thereof) of the business as a whole. Required: Discuss how this should be recorded in the general ledger, if at all, assuming that: A. the fair value of the machine given up is $30,000 (the fair value of the newly acquired machine is unavailable); B. the fair value of the newly acquired machine is $30,000 (the fair value of the machine given up is unavailable); and c. neither the fair value of the machine given up nor the machine acquired is available

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students