Solution-What amount of gain or loss should fernando

What amount of gain or loss should fernando recognize

Assignment Help Accounting Basics

Reference no: EM131693617

Question - Fernando Company traded machinery with original cost of $300,000 and accumulated depreciation of $15,000. It received in exchange from Rooney Company a machine with a fair value of $300,000. Fernando also paid cash of $30,000 in the exchange. Rooney's machine has a book value of $285,000. What amount of gain or loss should Fernando recognize on the exchange?

a. $30,000 gain

b. $ -0-

c. $1,500 loss

d. $15,000 loss

Reference no: EM131693617

Questions Cloud

Prepare a segmented income statement for trendy : Common selling and administrative expense was estimated to be $15,000. Prepare a segmented income statement for Trendy for the coming year.

Distinguish the tactics you would have used to fine-tune : E-Activity: Select a product you use on a regular basis. Go to the manufacturer's website to learn more about it and more about the company itself

Quality improvement strategy : The Arnold Palmer Hospital Case described in the text is a good example of a company following a quality improvement strategy.

Analyze the case study titled whos the worlds top retailer : Analyze the case study titled "Who's the World's Top Retailer? Walmart and Amazon Duke It Out" on. Summarize your findings in a two- to three-page paper.

What amount of gain or loss should fernando recognize : Rooney's machine has a book value of $285,000. What amount of gain or loss should Fernando recognize on the exchange

What an asset backed bond : Explain what an asset backed bond is and provide an example. Please explain thoroughly.

Discuss crucial in american efforts to contain communism : Beginning in the 1950s, maintaining a non-Communist South Vietnam became crucial in American efforts to contain communism

Find the amount of amortization expense on the december : Based on this information, the amount of amortization expense on the December 31, 2018 income statement and the book value of the patent on the December

Relationship between default risk and bond ratings : Explain the relationship between default risk and bond ratings. Please explain thoroughly.

User Account

All Pages

What amount of gain or loss should fernando recognize

Reference no: EM131693617

Reference no: EM131693617

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT