Valix Finacc vol 1 Problem 15-11

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 15-11

1. Computer                                                                                        430,000

             Inventory (car)                                                                                                            300,000

            Cash                                                                                                                 50,000

            Gain on exchange                                                                                            80,000

2. Machinery – new (110,000 + 30,000)                                     140,000

    Accumulated depreciation                                                            120,000

    Loss on exchange                                                                              10,000

           Machinery – old                                                                                                            240,000

           Cash                                                                                                                    30,000

   Fair value of asset given                                                                                          110,000

   Book value                                                                                                               120,000

   Loss on exchange                                                                                                    (  10,000)