On december 31, 2005, vey co. traded equipment with an original cost of $100,000 and accumulated depreciation of $40,000 for productive equipment with a fair value of $60,000. in addition, vey received $30,000 cash in connection with this exchange. there is commercial substance to the exchange. what should be vey's carrying amount for the equipment received at december 31, 2005?

equipment received at December 31, 2005   60,000

Explanation:

There is commercial substance in the exchange. Therefore Bey will recognize gain or losses on disposal.

The equipment will enter on Vey accounting with their fair value of 60,000

And that will be the amount reported on the balance sheet.

As a general rule:

When there is commercial substance:

record the traded-out asset at their book valuethe trade-in asset at their fair valuerecognize a gain/loss on the old asset

This w

Ithink the most approximate answer would be b.i hope it you!

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan