Valix Finacc vol 1 Problem 15-14

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 15 Problem 15-14

Company A

Machinery – new (600,000 + 200,000)                                                      800,000

Accumulated depreciation                                                                1,500,000

         Machinery – old                                                                                                2,000,000

         Cash                                                                                                                   200,000

         Gain on exchange (600,000 – 500,000)                                                               100,000

Company B

Machinery – new (800,000 - 200,000)                                                       600,000

Accumulated depreciation                                                                1,800,000

Cash                                                                                                       200,000         

         Machinery – old                                                                                                2,500,000

         Gain on exchange (800,000 – 700,000)                                                               100,000