Presented Below Are Two Independent Situations

question 225

Essay

Presented below are two independent situations:
(a) Waner Company exchanged an old machine (cost $100,000 less $60,000 accumulated depreciation) plus $5,000 cash for a new machine. The old machine had a fair value of $36,000. Prepare the entry to record the exchange of assets by Waner Company.

(b) Fisher Company trades old equipment (cost $90,000 less $54,000 accumulated depreciation) for new equipment. Fisher paid $36,000 cash in the trade. The old equipment that was traded had a fair value of $44,000. Prepare the entry to record the exchange of assets by Fisher Company. The transaction has commercial substance.

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Definitions:

Employment Gap

A period of time when a person is not employed in their professional field and is not earning a regular income.

Résumé

A document summarizing an individual's background, skills, and accomplishments, often used for job applications.

Design Strategy

An approach that outlines how design will be used to achieve business goals and meet user needs in product development or branding.

Audience

The group of people for whom a piece of writing, a project, or a performance is intended.