Scribd
Upload
597 views2 pages

Problem 23-7 and 23-8

Smile Company exchanged old equipment with a carrying amount of $2,400,000 for new equipment worth $500,000, resulting in a $100,000 gain on the exchange. Lecherous Company traded in old equipment with a carrying amount of $400,000 that had a trade-in value of $420,000 when purchasing new equipment for $1,400,000, resulting in a $20,000 gain. Frown Company exchanged old equipment with a carrying amount of $2,200,000 for new equipment worth $500,000, resulting in a $50,000 gain.

Uploaded by

Maria Licuanan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
597 views2 pages

Problem 23-7 and 23-8

Smile Company exchanged old equipment with a carrying amount of $2,400,000 for new equipment worth $500,000, resulting in a $100,000 gain on the exchange. Lecherous Company traded in old equipment with a carrying amount of $400,000 that had a trade-in value of $420,000 when purchasing new equipment for $1,400,000, resulting in a $20,000 gain. Frown Company exchanged old equipment with a carrying amount of $2,200,000 for new equipment worth $500,000, resulting in a $50,000 gain.

Uploaded by

Maria Licuanan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Problem 23-7

SMILE COMPANY FROW


Equipment - new 500,000.00 Equipment - new
Accumulated depreciation - old 2,000,000.00 Accumulated depreciation - old
Equipment - old 2,400,000.00
Gain on exchange 100,000.00

Problem 23-8 Lecherous Company

Cash price without traded in 1,400,000.00


Less: Cash payment with traded in 980,000.00
Trade in value 420,000.00
Less: Carrying amount 400,000.00
Gain on exchange 20,000.00

Equipment - new 1,400,000.00


Accumulated depreciation - old 600,000.00
Equipment - old 1,000,000.00
Cash 980,000.00
Gain on exchange 20,000.00
m 23-7
FROWN COMPANY
Equipment - new 500,000.00
Accumulated depreciation - old 1,750,000.00
Equipment - old 2,200,000.00
Gain on exchange 50,000.00

You might also like