Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Lively's equipment. Omega Corp will also pay Lively Inc. $30,000 cash. Omega Corp's equipment originally cost $250,000 when it was purchased 2 years ago and currently has $80,000 of accumulated depreciation and an estimated fair value of $230,000. Lively's equipment has a cost of $212,000 and accumulated depreciation of $35,000. The fair value of Lively Inc's equipment is determined to be $260,000.
Required:
A. Prepare the journal entry for Omega Corp assuming the exchange has commercial substance.
B. Prepare the journal entry for Omega Corp assuming the exchange lacks commercial substance.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Lively's ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which output from sprint planning provides the development team with a target and overarching direction for the sprint?
Answers (1)
For taxpayers who do not itemize deductions, the standard deduction amount is subtracted from the taxpayer's adjusted gross income. True False
Answers (1)
The aircraft industry has long been dominated by two large aircraft manufacturers, Boeing and Airbus. The demand for major aircraft is low, and Boeing and Airbus aggressively compete for orders from airlines.
Answers (2)
Determine the total cost for this plan given the following forecast: Month 1 2 3 4 5 6 Forecast 380 400 420 440 460 480 Use steady regular output of 400 unites per month, use overtime as needed for up to 40 unites per month, and use subcontracting
Answers (1)
Gatlin Manufacturing adds direct materials at the beginning of the production process, while conversion costs are incurred uniformly throughout the process.
Answers (1)
New Questions in Business
Franchise statistics, national and local business growth rates, and other industry information specific to your field is easily obtainable through a A. mail survey. B. market research booklet. C. marketing expert or agency. D. personal interview.
Answers (1)
A process-oriented layout A. deals with low-volume, high-variety production. B. addresses the layout requirements of large, bulky projects such as ships and buildings. C.
Answers (1)
What are a student pilot's restrictions regarding visiblity and flight above, below, and near clouds?
Answers (1)
If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:"
Answers (1)
Purchase intentions are a very good indicator of an individual's future behavior. may be better predictors of future behavior for large dollar expenditures. are a relatively good predictor of a family's purchase behavior.
Answers (1)