Business, 25.03.2021 22:10 BIKRAMlawati9684

Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,500 (original cost of $37,000 less accumulated depreciation of $20,500) and a fair value of $9,900. Kapono paid $29,000 cash to complete the exchange. The exchange has commercial substance.

Case B.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $545,000 and a fair value of $790,000. Kapono paid $59,000 cash to complete the exchange. The exchange has commercial substance.

Required:
a. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
b. Assume the fair value of the old tractor is $23,000 instead of $9,900. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
c. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
d. Assume the fair value of the farmland given is $436,000 instead of $790,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
e. Assume that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:10

The development price itself is such a huge barrier, it's just a very different business model than boeing's used to. our huge development programs are typically centered around commercial airplanes, military aircraft, where there is a lot of orders. and right now the foundation of the business is two bites a year.

Answers: 3

Answer

Business, 22.06.2019 05:00

Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the survey asks participants to rate their overall health using a 5-point rating scale. what is the scale of measurement used for this question? ratio ordinal interval nominal

Answers: 1

Answer

Business, 22.06.2019 10:50

Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker

Answers: 1

Answer

Business, 22.06.2019 21:00

An important source of public scrutiny is "watchdogs." these are: the efforts of a firm's competitors, including how often the competitors attack the firm's strategies. taxpayer-supported government agencies that limit a firm's ability to compete in foreign markets. companies designated by the government to only produce products that support the government defense program. socially conscious groups that make it their mission to measure the social responsibility levels of businesses, and provide consumers with their opinions about the level of corporate responsibility of various companies.

Answers: 2

Answer

You know the right answer?

Case A. Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value o...

Questions