Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20 million, for some highly specialized machinery from Biden Corp. In addition, Harris Ltd. also paid $5 million along with the land in a transaction holding commercial substance to obtain the machinery. What will be the cost of the specialized machinery in the financial statements of Harris Ltd.

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A: Based on the fair value of the land building as required in one we divided the cost in ratio of fair…

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A:

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A: GIVEN   On January 2, 2018, Randy Corporation acquired a track of land that is to be sold in the…

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A: Following is the answer to the given question

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A: Given that, Data of Building "24" original cost of $2,800,000 accumulated depreciation of $1,300,000…

Q: (i)Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…

A: Book value is the price you initially paid for the property. Its resale value may have gone up or…

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A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…

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A: Concept of Valuation of Inventory

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A: Total cost to be assigned = P20,000,000 + P240,000 Total cost to be assigned = P20,240,000

Q: On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of…

A: In the books of Robers Company: Value of equipment = Fair value of equipment - Cash paid  = $75,000…

Q: Zenith Corporation sells some of its used store fixtures for $3,757. The acquisition cost of the…

A: In the case of the sale of a fixed asset, only the amount received in cash by the transaction is…

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A: If any Property , Plant & Equipment is obtained under exchange with other non monetary assets (…

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A: This is a basket purchase so in this the fair value is used to allocate the purchase of group…

Q: One of the companies purchased a set of fixed assets for an amount of 12 million dinars in cash. The…

A: Proof required of purchase of the above assets are :  Invoice / receipt : It is a document which…

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A: a) Companies acquire other companies for various reasons and one of the reason is growth strategy.…

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A: GIVEN   The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…

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A: Assets can be purchased in exchange of other assets and in addition of some cash, but the criteria…

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A: Amortization- All assets which cannot be seen is called intangible assets. These assets are not…

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A: In the case of an exchange, the new asset should be recorded at its fair value.

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A: Journal means the book of prime entry where all entries are recorded in different pages.

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A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: Acquired a tract of land with an existing building in exchange for 50,000 ordinary shares of P100…

A: The answer has been mentioned below.

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A: This question deals with the IAS 16 "Property plant and equipment". When non monetary asset is…

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: 1.

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A: Given that, Building 24 Data -   appraised value of building  $1,700,000 cost of building $2,800,000…

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A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 20X9, Planet Corporation sold equipment for $400,000 to Star Corporation, its wholly…

A: Solution: Depreciation for 20X9  = (Cost  - Salvage value) / useful life = ($900,000 - $50,000) / 10…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Commercial Substance: If there is a change in future cash flow of the business as result of business…

Q: Grabrille Inc. and Lucy Company have an exchange with no commercial substance. The asset given up by…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Justin Company purchased a plant facility consisting of land and building from Joshua Company in…

A: Acquisition:- When one company acquires the shares of another company by paying purchasing…

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A: Investment property should be recognized in the books of accounts at amount which is spent to…

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A: If exchange have commercial substance, the sales value of assets  & Purchase value of assets…

Q: in the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had…

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A: Journal is a primary book where transactions are originally recorded. Further, a journal entry is…

Q: Jeremiah Corporation has provided the following information on intangible assets as follows: a. A…

A: Amortization is a way of lowering the book value of asset over its useful life to correctly estimate…

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: 1. Calculation of Initial Valuation: Total Purchase price = Land and Building Purchase Cost + Title…

Q: Samtech Manufacturing purchased land and building for $4 million. In addition to the purchase price,…

A: Fixed assets are the long-term assets that are used by the firm in the manufacturing of goods and…

Q: Harris Ltd. exchanged a parcel of land with a carrying value of $15 million and fair value of $20…

A: The carrying value of an asset is the value at which the company records the asset in its balance…

Q: Samtech Manufacturing purchased land and building for $3 million. In addition to the purchase price,…

A: 1. Value to be capitalized: Purchase Price $3,000,000 Title Insurance $23,000 Add: Legal fees…

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A: Given, Cost of Total Asset = $520,000 Appraised Value = $600,000

Q: Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of…

A:

Q: Prince Company and Albert Company agreed to exchange tractor trailers. Information relating to these…

A: The asset is considered as something that an investor buys with an intention of making income from…