Use the Following Information to Answer Questions

question 74

Short Answer

Use the following information to answer questions
Arlington Company is constructing a building.Construction began on January 1 and was completed on December 31.Expenditures were $2,400,000 on March 1, $1,980,000 on June 1, and $3,000,000 on December 31.Arlington Company borrowed $1,200,000 on January 1 on a 5-year, 12% note to help finance construction of the building.In addition, the company had outstanding all year a 10%, 3-year, $2,400,000 note payable and an 11%, 4-year, $4,500,000 note payable.
-In an exchange with commercial substance, Huang Company traded equipment with a cost of ¥8,200,000 and book value of ¥3,120,000 and gave ¥4,698,000 cash.The old machine had a fair value of ¥2,960,000.Which of the following journal entries would Huang make to record the exchange?

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Definitions:

Quality Costs

Expenses related to ensuring products or services meet company and customer standards, including costs of prevention, appraisal, and failure.

Quality of Design

How well a product's design meets customers' needs and expectations in terms of functionality, aesthetics, and overall performance.

Quality of Conformance

The degree to which a product or service meets the specified design or specifications and quality standards during the manufacturing or delivery process.

Excellence

The quality of being outstanding or extremely good in performance or quality.