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Edmond Company veerd machinery with an appraised honour of $1,755,000, a enter footing of $2,700,000 and collect disparagement of $1,350,000 with Rosen breadbasket for machinery Rosen owns. The machinery has an appraised value of $1,695,000, a record cost of $3,240,000, and Accumulated Depreciation of $1,782,000. Rosen also gave Edmond $60,000 in the exchange. father depreciation has already been updated. operating instructions (a) ready the entries on both(prenominal) companies books assumptive that the exchange had commercial substance. (Round unhurt computations to the closest dollar.) (b) Prepare the entries on both companies books assuming that the exchange lacked commercial substance. (Round all computations to the nearest dollar.) (a)commercial Substance Edmond Machinery1,695,000Cost$2,700,000 Cash60,000A/D 1,350,000 Accum. DepreciationBV1,350,000 Machinery1,350,000FV 1,755,000 off on flip ofGain$ 405,000 lay Assets405,000 Machinery2,700,000 Rosen Machinery1,755,000Cost$3,240,000 Accum.

DepreciationA/D 1,782,000 Machinery1,782,000BV1,458,000 Gain on fill in ofFV 1,695,000 Plant Assets237,000Gain$ 237,000 Machinery3,240,000 Cash60,000 (b)No Commercial Substance Edmond Machinery1,303,846 Cash60,000 Accumulated DeprecationMachinery1,350,000 Gain on Exchange13,846 Machinery2,700,000 $60,000 ÷ ($60,000 + $1,695,000) × $405,000 = $13,846 Rosen Machinery1,518,000 Accumulated DepreciationMachinery1,782,000 Machinery3,240,000 Cash60,000If you loss to get a liberal essay, order it on our website: Ordercustompaper.com

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