Asset Exchanges Bahrain Corporation Follows a Policy of a 10% Depreciation Charge

question 46

Essay

Asset exchanges
Bahrain Corporation follows a policy of a 10% depreciation charge per year on machinery and a 5% depreciation charge per year on buildings.

The following transactions occurred in 2020:
March 31, 2020 A warehouse that Bahrain had purchased on January 1, 2011, for $ 1.7 million (with a current fair value of $ 1 million) was exchanged for another warehouse which also had a current fair value of $ 1 million. Depreciation has been properly charged from Jan. 1, 2011 through Dec. 31, 2019. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value.
June 30, 2020 Machinery with a cost of $ 120,000 and accumulated depreciation through December 31, 2019, of $ 90,000 was exchanged, along with $ 75,000 cash, for a parcel of land with a fair market value of $ 115,000.
Instructions
Prepare all appropriate journal entries for Bahrain Corporation for the above dates.

Determine the outcome of allowing trade on a country's export and import statuses.

Understand the concept of comparative advantage and how it affects trade decisions.

Analyze the effects of trade on producer and consumer surplus.

Recognize the role of tariffs and their impact on trade.

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Definitions:

Regular Classrooms

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Learners who have physical, mental, or developmental conditions that require specific accommodations to fully participate in educational activities.

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A speech disorder characterized by repetitions, prolongations, or blockages that disrupt the normal flow of speech.

Myelination

The process by which axons are coated with myelin.