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  3. a. on march 1, 2018, cbs acquired a machine for 50

A. On March 1, 2018, CBS acquired a machine for 50,000 in cash. The estimated...

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Accounting

A. On March 1, 2018, CBS acquired a machine for 50,000 in cash. The estimated useful life was 10 years while the anticipated salvage value was 2,000. Below are presented a set of independent situations: 1. The machine is completely destroyed by a fire on June 1, 2021. CBS is entitled of an insurance settlement of 30,000. Assume that the settlement was received during the next fiscal period. 2. On November 1, 2022, CBS sold the machine for 32,000 for cash to XZY company. 3. On July 1, 2020, CBS trades its machine for a new equipment of XZY. The exchange lacks commercial substance. Required: For each independent situation, present the journal entries to be made to record each transaction. (18%) Additional information a. Assume that CBS uses the straight-line depreciation method. b. The fiscal year of CBS commences on January 1 and ends on December 31 of each year. B. CBS controls a fully depreciated asset that is still being used in the operations of the firm. CBS decided not to present the fully depreciated asset on the balance sheet or to disclose this information in the notes of the financial statements. Required: Critically discuss CBSs decision

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