Smith and jones each own tracts of land because of the

Reference no: EM13601747

Smith and Jones each own tracts of land. Because of the location of their current operations, each would prefer to have the other's land. Smith and Jones agree to exchange tracts. Jones pays Smith $36,000 based upon the following data.

Smith Land Jones Land
Original Cost $270,000 $280,000
Appraised fair value at date of exchange $300,000 $264,000

Instructions
(a) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction has commercial substance.
(b) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction does not have commercial substance.
(c) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction has commercial substance.
(d) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction does not have commercial substance.

Reference no: EM13601747

Questions Cloud

On december 1 stone mountain production company had a work : on december 1 stone mountain production company had a work in process inventory of 1200 units that were complete as to

What is the mc of producing the additional engine what is : firm a makes and sells motorcycle. the total cost of each cycle is the sum of the cost of frames assembly and engine.

The heater surface is exposed to air that is also at : a cartridge electrical heater is shaped as a cylinder of length l 200 mm and outer diameter d 20 mm. under normal

Question spring stretches by 00186 m when a 324-kg object : question spring stretches by 0.0186 m when a 3.24-kg object is suspended from its end. how much mass should be attached

Smith and jones each own tracts of land because of the : smith and jones each own tracts of land. because of the location of their current operations each would prefer to have

Creighton inc has invested 2165800 on equipment the firm : creighton inc. has invested 2165800 on equipment. the firm uses payback period criteria of not accepting any project

The inner and outer surface temperatures of a glass window : the inner and outer surface temperatures of a glass window 5 mm thick are 15degc and 5degc. what is the heat loss

Aquaman stock has exhibited a standard deviation in stock : aquaman stock has exhibited a standard deviation in stock returns of 0.7 whereas green lantern stock has exhibited a

If 615 l of oxygen at 18c and an absolute pressure of 245 : if 61.5 l of oxygen at 18c and an absolute pressure of 2.45 atm are compressed to 48.8l and at the same time the

User Account

All Pages