Business, 01.11.2019 06:31, groverparham3
Reba company received $60,000 in cash and used equipment with a fair value of $160,000 from fargo corporation in exchange for reba's existing equipment, which had a fair value of $210,000 and an undepreciated cost of $170,000 recorded on its books. the transaction was undertaken because reba was revising its market strategy and planned to reduce the use of this type of equipment in its production. how much gain should reba recognize on this exchange and at what value should the acquired equipment be recorded, respectively?
gain – $10,000 and equipment – $150,000
gain – $10,000 and equipment – $160,000
gain – $40,000 and equipment – $150,000
gain – $40,000 and equipment – $160,000
Answers: 1
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An outside supplier has offered to sell talbot similar wheels for $1.25 per wheel. if the wheels are purchased from the outside supplier, $15,000 of annual fixed overhead could be avoided and the facilities now being used could be rented to another company for $45,000 per year. direct labor is a variable cost. if talbot chooses to buy the wheel from the outside supplier, then annual net operating income would:
Answers: 1
Reba company received $60,000 in cash and used equipment with a fair value of $160,000 from fargo co...
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