Case a. kapono farms exchanged an old tractor for a newer model. the old tractor had a book value of $13,000 (original cost of $30,000 less accumulated depreciation of $17,000) and a fair value of $9,200. kapono paid $22,000 cash to complete the exchange. the exchange has commercial substance. case b. kapono farms exchanged 100 acres of farmland for similar land. the farmland given had a book value of $510,000 and a fair value of $720,000. kapono paid $52,000 cash to complete the exchange. the exchange has commercial substance. rev: 06_22_2019_qc_cs-171508, 01_16_2020_qc_cs-195439 1. what is the amount of gain or loss that kapono would recognize on the exchange of the land? 2. assume the fair value of the farmland given is $408,000 instead of $720,000. what is the amount of gain or loss that kapono would recognize on the exchange? what is the initial value of the new land? 3. assume the same facts as requirement 1 and that the exchange lacked commercial substance. what is the amount of gain or loss that kapono would recognize on the exchange? what is the initial value of the new land?

Answers

Answer 1

The amount of gain or loss that Kapono would recognize on the exchange of the tractor is: $3,800.

Gain or loss

Case A.

1. Amount of gain or loss

Book value of old tractor $13,000

Fair value of old tractor ($9,200)

Loss on exchange to recognized $3,800

Initial value

Fair value of old tractor $9,200

Cash paid to complete the exchange $22,000

Initial value of new tractor $31,200

2. Amount of gain or loss

Book value of old tractor $13,000

Fair value of old tractor $16,000

Gain on exchange to recognized $3,000

Initial value

Fair value of old tractor $16,000

Cash paid to complete the exchange $22,000

Initial value of new tractor $38,000

Case B

1. Amount of gain or loss

Book value of old farmland $510,000

Fair value of old farmland ($720,000)

Gain on exchange to recognized $210,000

Initial value

Fair value of old farmland $720,000

Cash paid to complete the exchange $52,000

Initial value of new land $772,000

2. Amount of gain or loss

Book value of old farmland $510,000

Fair value of old farmland $408,000

Loss on exchange to be recognized $102,000

Initial value

Fair value of old farmland $408,000

Cash paid to complete the exchange $52,000

Initial value of new land $460,000

3. Amount of gain or loss

Gain will not be recognized because the exchange lacked commercial substance.

Initial value

Book value of old farmland $510,000

Cash paid to complete the exchange $52,000

Initial value of new land $562,000

Therefore the amount of gain or loss that Kapono would recognize on the exchange of the tractor is: $3,800.

The complete question is:

Case A.

Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $13,000 (original cost of $30,000 less accumulated depreciation of $17,000) and a fair value of $9,200. Kapono paid $22,000 cash to complete the exchange. The exchange has commercial substance.

1. What is the amount of gain or loss that Kapono would recognize on the exchange of the tractor?

2. Assume the fair value of the old tractor is $16,000 instead of $9,200. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?

Case B.

Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $510,000 and a fair value of $720,000. Kapono paid $52,000 cash to complete the exchange. The exchange has commercial substance.

1. What is the amount of gain or loss that Kapono would recognize on the exchange of the land?

2. Assume the fair value of the farmland given is $408,000 instead of $720,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

3. Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

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Related Questions

A smart card is an electronic funds transfer tool that can serve as a(n) ______. (Select all that apply)

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A smart card is an electronic funds transfer tool that can serve as :-

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A smart card is a physical card with a chip that acts as a security token. Smart cards are usually the same size as a driver's license or credit card and can be made of metal or plastic.

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Effective employee training within an organization Group of answer choices all of these choices enables employees to perform tasks faster. increases employee efficiency. results in more productive employees. raises employee skill levels.

Answers

Option C) Results in more productive employees.

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What is the correct process for setting up a recurring project for the same client?

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Create a project

Go to Work, then select Create project. The Create project panel appears.

Fill out the fields.

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Select Save.

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An advantage of ________ is that they allow easy identification of the order of precedence and easy determination of slack time.

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An advantage of B. Gantt chart is that they allow easy identification of the order of precedence and easy determination of slack time.

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The question is incomplete. Please read below to find the missing content.

An advantage of ________ is that they allow easy identification of the order of precedence and easy determination of slack time.

A. PERT diagrams

B. Gantt chart

C. design diagram

D. database design

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The issues that are important for tangible and intangible assets, include determining:________.

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The issues that are important for tangible and intangible assets include determining how to record the disposal of the asset, what amounts to include in the cost, and how to expense the cost of the asset over its life.

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which characteristic that may pose a potential nutrition problem would the nurse identify in a preterm neonate

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The immature sucking reflex is the characteristic that may pose a potential nutrition problem in a preterm neonate.

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Later infants may develop various diseases and can be anemia. the infant requires extra care in such a situation, the increase in the flow of milk may help the infact in intake.

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Charlie is a manager who, every week, has to review and approve reports, monitor the performance of subordinates, set the vision and goals for the team, set the structure for the team, and communicate with executives. However, Charlie seems to be in meetings all of the time and has little time to review and approve reports. Charlie is most likely experiencing ________.

Answers

Charlie is a manager who, every week, has to review and approve reports, monitor the performance of subordinates, set the vision and goals for the team, set the structure for the team, and communicate with executives. However, Charlie seems to be in meetings all of the time and has little time to review and approve reports. Charlie is most likely experiencing a hard time at work

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A manager is a leader who have people who directly reports to him. He is charged with the duty of supervision am ensuring that a company goal and objective is achieved.

Therefore, Charlie seems to be in meetings all of the time and has little time to review and approve reports. Charlie is most likely experiencing a hard time at work.

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Marquis Company estimates that annual manufacturing overhead costs will be $894,600. Estimated annual operating activity bases are direct labor cost $497,000, direct labor hours 49,700, and machine hours 99,400. Compute the predetermined overhead rate for each activity base.

Answers

Overhead rate per direct labor cost: 180%

Overhead rate per direct labor hour: 18

Overhead rate per machine hour: 9

Procedure:

Overhead rate per direct labor cost

= 894600 ÷ 497000

= 1.8

= 1.8 × 100

= 180%

Overhead rate per direct labor hour

= 894600 ÷ 49700

= 18

Overhead rate per machine hour

= 894600 ÷ 99400

= 9

Divide each operating activity cost by manufacturing overhead cost

What is overhead rate?

The overhead rate is a cost that is incurred during the manufacturing of a product or service. Overhead costs are expenses that are not directly related to production, such as corporate office costs. An overhead rate is applied to the direct costs associated with production to allocate overhead costs by spreading or allocating overhead costs based on specific measures.

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Too much inventory on hand a.increases the losses due to price declines b.ties up funds that could be used to improve operations c.increases the cost to safeguard the assets d.all of these

Answers

A correct option is an option (d) i.e., all of these

What do you mean by inventory?

The accounting of goods, components, and raw materials that a business either sells or utilizes in production are known as inventory. You use inventory management as a business leader to make sure you have enough goods on hand and to spot when there is a shortfall.

Why is keeping too little and too much inventory bad?

Inventory is bought to resell it for a profit, and keeping too much of it on hand can cause working capital to become locked up in items. As degradation happens and demands decline over time, inventory loses value and eventually loses money.

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When talking to his investment clients, broker adam often refers to tax shelters. this term typically refers to:_______

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Tax shelters are methods used by companies or individuals to reduce their tax liability.

What are tax shelters?

Tax is the percentage of an income or asset that is levied by the government on companies or individuals. Taxes can be levied on income of people. This type of tax is known as income tax. Tax can be levied on the ownership of certain assets. This is known as estate tax.

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Olivia bakes cakes and Andrew grows corn. Olivia and Andrew both like to eat cake and eat corn. In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade

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Both Olivia and Andrew can benefit from trade in all of the above cases.

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Exchange initially cited informal sex companions, regardless of sexuality as many gay and bisexual guys have been closeted, but developed to mean the associate is relatively wealthy and the companion who is traded is economically disadvantaged.

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The recognition that an organization's success is dependent on, and tied directly to, how well it values, engages, and includes the rich diversity of its community members is known as:

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Inclusive excellence
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Inclusive excellence is the understanding that an organization's success depends on and is directly correlated with how well it values, engages, and incorporates the rich diversity of its community members.
The Inclusive Excellence framework, which focuses on five imperatives for diversity, equity, and inclusion, is used as the basis for campus and community efforts in the Strategic Plan for Inclusive Excellence.
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Which audience analysis anticipates resistance if something is going to cost money?

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The audience analysis that anticipates resistance if something is going to cost money is a situational analysis. This is further explained below.

What is situational analysis?

Generally, An organizational situation may be better understood by doing a situational analysis, which is a set of techniques for evaluating both the internal and external variables of a company.

In conclusion, A situational analysis is the kind of audience analysis that determines whether or not there will be opposition to anything if it will cost money.

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The textile industry is composed of a large number of small files. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will

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The textile industry is composed of a large number of small files. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will "shift the market supply left and the price of textiles will rise".

What is economic theory?

An economic theory is a body of concepts and precepts that describes how various economies operate. An economist may use theories in many ways depending on their specific function.

The purpose of economic theory are-

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The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as ______.

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The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as :- Statutory Reserve Ratio.

The statutory reserve ratio (SRR) is the proportion of the deposit liabilities that commercial banks are required to keep as a cash deposit with the Central Bank. Under the Monetary Law Act (MLA), commercial banks are required to maintain reserves with the Central Bank at rates determined by the Bank.

Why is SRR important?

Reserve requirements are the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals. Reserve requirements are a tool used by the central bank to increase or decrease the money supply in the economy and influence interest rates.

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Answer:

reserve requirement

Explanation:

3. Compute the first production department's cost of ending work in process inventory for materials, conversion, and in total for May.

Answers

The first production department's cost of ending work in process inventory for materials, conversion, and in total for May is:

Cost Account For    

Complete  262,400   0.97   254,528  

Calculations and Parameters

Given:

Opening Units 51000

Started              242400

Complete          293400

Transferred         -262400

Closing                  31000

The complete text contains the production table and the first production cost is given above.

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Using the AND or OR statement, filter the employee table for employees who have a title starting with Sales and an address containing Ave. Identify the last name of the 3rd record. Steve Margaret Johnson Peacock

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Answer:

can you be more clear with your question

A(n) _______ benefits program can also be referred to as a flexible benefits programs.

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A(n) full-flex benefits program can also be referred to as a flexible benefits programs. It is a type of cafeteria plan benefit under Section 125 of the Internal Revenue Code. It offers workers an alternative.

What is an internal revenue code?

The Internal Revenue Code, formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code.

Therefore, the correct answer is as given above

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Best Buy provides their loyal customers with a relevant coupon based on previous purchases through their mobile phone, while they are in the store. This represents the _____ aspect of the 4E framework of digital marketing.

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This represents the exciting aspect of the 4E framework of digital marketing.

What does the digital marketing 4E framework stand for?

The foundation of applied behavioral science is behavior change frameworks. These summaries of cutting-edge decision-making insights, created by behavioral scientists for policymakers and business leaders, are crucial for implementing research in both the public and private sectors. Frameworks reduce human decision-influencing tactics to easily remembered, carryable mnemonics or acronyms.

Education, empowerment, entertainment, and engagement are all part of the 4E paradigm for social media marketing. Each makes an effort to use a different technique to persuade customers to buy your good or service.

EducateEmpowerEntertainEngage

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Aggregate supply (as) denotes, while holding the price of inputs fixed, the ________ that firms choose to produce and ________.

Answers

Aggregate supply (as) denotes, while holding the price of inputs fixed, the price level of output that firms choose to produce and GDP.

What is aggregate supply?

Aggregate supply is when goods and service produced or manufacture are made available to buyers  or can be defined as the amount of goods produce and supply to the market at particular period of time.

Aggregate supply can tend to increase in a situation were the price of goods and services decrease or when the price of product fall.

Therefore, Aggregate supply donate, while holding the price of inputs fixed, the price level of output that firms choose to produce and Gross domestic product (GDP).

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What is a difference between being cheap and rich?

Answers

Cheap means that you have money but you are stingy and don’t like sharing. You would only spend money on your self and when it comes to give others you think omg I don’t have money when your house is full of gold. A cheap person is someone who always buys items at the lowest possible price. People who are cheap do not care about the quality of an item and try to spend as little money as possible or it can mean that your poor but you act so poor that you need to take toilet roles from public bathroom. Rich means you have money and like showing it off to people but doesn’t mean your stingy you can be rich and still give poor people some money to help them. Rich people seeks to build relationships based on trust, liking, shared values, and mutual respect. People who are rich help others and cultivate relationships with no expectation of anything in return.

Under a typical listing agreement, what duties does the broker and the sales agent owe to the seller

Answers

The duties of the broker and the sales agent owe to the seller are:-

Build relationships with your customers.negotiations with customers.processing sales transactions.analysis of data and market trends.processing of sales transactions;Evidence of solid understanding of the company's products or services.Networking to attract potential clients.

Sales agents are professionals your company hires to market your products and services while acting as brand spokespersons. Salespeople are often independent workers who earn commissions based on the amount they sell. Some salespeople work for commercial agencies that employ employees.

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The sum of three numbers is 106. The third number is two times the first number plus two. The second number is three times the first number. What is the first number

Answers

The sum of three numbers is 106. The third number is two times the first number plus two. The second number is three times the first number. The first number is 17 and this question can easily be solved using linear equation in one variable.

Solution: Let the first number be x

then the second number = 3x

also, the third number = 2 (x + 2)

now according to question

x + 3x + 2 (x + 2) = 106

4x + 2x + 4 = 106

6x = 106 - 4

6x = 102

x = 17

hence the first number is 17.

What is linear equation in one variable?The equation for a linear equation in one variable is written as ax + b = 0, where a and b are two integers, and x is a variable. This equation has only one solution.The following procedures are used to solve an equation with a single variable.Clear any fractions using the LCM in step one.Simple all sides of the equation in step two.Isolate the variable in step three.Lastly, Check your response.

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What financial impacts could result if a for-profit organization was built within your community?

Answers

The financial impacts  for-profit organization is one that operates with the goal of making money. Most businesses are for-profits that serve their customers by selling a product or service.

The business owner earns an income from the for-profit and may also pay shareholders and investors from the profits. The establishment of a for-earnings business has a few clean advantages: self-employment and  financial rewards proportional to success. It is not with out risks, but, which includes financial liability and obligation to traders and creditors.

A fitness care machine run by way of for income will offer the greatest advantages at least price. First, for-income health care will decrease the prices of care.

A for-profit business enterprise is one that operates with the purpose of creating wealth. maximum corporations are for-income that serve their customers by selling a services or products. The business proprietor earns an earnings from the for-earnings and may also pay shareholders and investors from the profits.

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Linda earns $83,000 per year as an employee. How much will she pay this year in Social Security taxes

Answers

Answer: b.$5,146.00

Explanation:

Social security tax rate is 6.20%, you would multiply $83,000 by 0.062 to get a total of $5,146

how is join stock company different from other organizations?​

Answers

A joint stock company is an particular legal entity, apart from the persons involved. It can own support and can because it is an entity it can sue or can be sued. Whereas a federation or a sole proprietor, it has no such legal reality apart from the person involved in it.

Why joint stock company is more relevant than other?

As compared to sole proprietorships and partnership firm, a joint stock company can earn huge amount of accounts. It encourages the mobilization of savings of millions for the productive purposes. Since its capital is separated into share of small value, even an ordinary investor can contribute to its capital.

What are the factors of joint stock companies?

The Companies Act 1956 defines a joint stock company as an insincere person created by law, having separate legal entity from its owner with an unchanging sequence and a common seal. Shareholders of Joint Stock Company have limited liability i.e liability limited by warranty or shares.

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The retailing practice of integrating customer experiences across the physical and online channels is referred to as

Answers

The retailing practice of integrating customer experiences across the physical and online channels is referred to as Omni-channel retailing.

What is Omnichannel Retailing?

Omni-channel retailing describes a model in which clients are able to interact with multiple sales and media channels at once, and have their information retained by the retailer as they move between them.

For example, omni-channel retailing allows your clients to browse on a desktop, compare prices on a mobile device, then visit your brick-and-mortar location to finalize a purchase — all without having to restart their customer journey. The omni-channel retailing links together all channels, combining the showroom and the website to create a single, unified experience.

Therefore, we can conclude that the correct option is B. The retailing practice of integrating customer experiences across the physical and online channels is referred to as Omni-channel retailing.

Your question is incomplete, but most probably your full question was:

A. full-service retailing.

B. omni-channel retailing.

C. digital retailing.

D. multi-channel merchandising.

E. scrambled merchandising.

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Customers have legitimate doubts during the sales process, and salespeople should:_____.

Answers

Customers may have legitimate doubts, and salespeople are there to resolve them.

Successfully and honestly working with others helps build relationships based on trust. Often salespeople can introduce the customer to others in the firm who can answer their questions and provide them with anything they need.

Customers count on salespeople to point out fresh potential for cost-cutting, revenue-boosting, market-penetration, and risk-mitigation that they themselves may not have yet noticed. The worth of their ideas, as opposed to the caliber of their offerings, is what distinguishes the finest salesmen.

Customers seek for salespeople who stand out from the competition. They seek out salespeople who can articulate why they are superior to those in the field.

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The table below shows the weekly demand for hamburgers in a market where there are just three buyers.

Answers

At a price of $6, the quantity of hamburgers demanded in the market is 17.

What is the quantity of hamburgers demanded ?

A market demand schedule is a table that shows the total quantity of a good that is demanded at a certain price in the market. Looking at the table, it can be seen that there is an inverse relationship between price and quantity demanded.

In order to determine the total quantity demanded when price is $6, add the quantity demanded by buyer 1, 2 and 3 together.

Total quantity demanded : 7 + 4 + 6=  17

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Total revenue minus the total _____ and total _____ costs of production is economic profit.

Answers

Total revenue minus the total implicit and total explicit costs of production is economic profit.

What are the key features of Accounting & Economic profits?

Production is the process of fusing inputs to create outputs, which should ideally be worth more than the inputs.

Revenue, which is calculated as price times quantity sold, is the income from selling a company's goods.

The total revenues less all explicit costs, including depreciation, is the accounting profit.

Total revenues less total costs, including both explicit and implicit costs, equals economic profit.

The main difference between Explicit & Implicit?

Explicit costs are expenses incurred directly by a company, such as payments for goods, rent, labour and salaries.

Implicit costs are a special kind of opportunity cost: they represent the cost of the company's existing resources that could have been used in another way.

An entrepreneur who runs a firm, for instance, could use her labor to pay the bills at a job.

Hence, the answer is explicit and implicit.

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how to divide 134 800 by 240 using long method? 1 DNA unzips exposing nitrogen bases. 2 RNA nucleotides pair up with their corresponding DNA bases, copying the code.3 mRNA carries the newly copied code out of the nucleus and to the ribosome.4 tRNA brings the appropriate amino acids to the ribosome depending on the code.5 A series of amino acids make up the newly formed proteins.6 The proteins get to work!Which of the above steps is Transcription? Which of the above steps is Translation? (Please answer ASAP) Thanks for answering, I appreciate you for the help you have provided me! Enjoy your day/night. Why did Alexander halt his expedition in 326 B.C.? A. Because he was homesick.B. Because he was very ill.C. Because his troops rebelled.D. Because he was sick of waging wars. In the early 1800s, why was there so little settlement on the Great Plains?White explorers did not travel into the region until the mid-1800s.The Battle of Fallen Timbers had driven American settlers from the region.Conditions there were not suitable for the kind of farming done at that time.White settlers could not find a route through the Appalachian Mountains. Dose air have weight ? Why or why not? El Burj Khalifa es la torre ms alta de Dubai y mide 821 m. Si se deja caer una moneda desde lo alto de la torre, cul es la magnitud de la velocidad con la que choca con el suelo? whoever answers this correctly gets brainliest and 50 points Justify why the Mansa Musa helped create a golden age in Mali's history. List 2 things that he did. And when he saw us, he bit into himself,Like someone whom wrath tears up from inside.My clever guide cried out to him, "PerhapsYou believe that this is the Duke of AthensWho in the upper world contrived your death?"Go off, you beast! this man does not approachInstructed by your sister but comes hereIn order to observe your punishments."Just as the bull breaks loose right at that momentWhen he has been dealt the fatal blowAnd cannot run but jumps this way and that,So I saw the Minotaur react.(12.5-9.12-25)Which detail from Dante's poem is not found in Blake's illustration?O A. The Minotaur jumping aboutO B. The Minotaur biting himselfC. Virgil communicating with the MinotaurD. The Minotaur reacting to Virgil's challenge In the body, red blood cells have a much shorter lifetime than cheek cells.Use ideas about the different structure of these cells to suggest why. Nona Curry started her own consulting firm, Larkspur, Inc., on May 1, 2022. The following transactions occurred during the month of May. May 1 Stockholders invested $18,150 cash in the business in exchange for common stock. 2 Paid $726 for office rent for the month. 3 Purchased $605 of supplies on account. 5 Paid $182 to advertise in the County News. 9 Received $1,694 cash for services performed. 12 Paid $242 cash dividend. 15 Performed $5,082 of services on account. 17 Paid $3,025 for employee salaries. 20 Paid for the supplies purchased on account on May 3. 23 Received a cash payment of $1,452 for services performed on account on May 15. 26 Borrowed $6,050 from the bank on a note payable. 29 Purchased office equipment for $2,420 paying $242 in cash and the balance on account. 30 Paid $218 for utilities.A) Prepare an income statement for the month of May 2017.B) Prepare a classified balance sheet at May 31, 2017. A landscaping company charges customers aone-time fee and an hourly rate of $10. For 1hour of service, the company charges $35.3. Which equation represents the totalcharge t for h hours of landscaping?Ot=10h=10h+250=250 + 10 In Lord of the Flies Chapter 7, what do the boys find on the mountain? how do you calculate the midpoint of question e)? I am very desperate. please help One direction or Jonas brothers (only one right answer) explain the following observation referring to the appropriate process of heat transfer in each casetwo cups of tea are poured at the same time . they are left for 10 minutes . one of the cups has a metal teaspoon left in it . the tea in this Cup is cooler than the tea in the other Cup at the end of the 10 minute period Please answer correctlyPlease help me!Will give the brainliest! Nick describes what his life was generally like in those days in New York. What sort of details doeshe bring up? Which type of coolant(s) usually is (are) used to remove heat from a nuclear reactor core?a.water onlyc.liquid sodium or waterb.liquid sodium onlyd.CFCs Think about a time when you were successful. What did you do? Why did you feel you were successful? A rope, attached to a weight, goes up through a pulley at the ceiling and back down to a worker. The worker holds the rope at the same height as the connection point between the rope and weight. The distance from the connection point to the ceiling is 40 ft. Suppose the worker stands directly next to the weight (i.e., a total rope length of 80 ft) and begins to walk away at a constant rate of 3 ft/s. How fast is the weight rising when the worker has walked: