Property Plant and Equipment Paper 13

Donated assets are recorded at:

The fixed-asset turnover ratio provides:

The balance sheets of Davidson Corporation reported net fixed assets of $320,000 at the end of 2011. The fixed-asset turnover ratio for 2011 was 4.0 and sales for the year totaled $1,480,000. Net fixed assets at the end of 2010 were:

The basic principle used to value an asset acquired in a nonmonetary exchange is to value it at:

In a nonmonetary exchange of equipment, if the exchange has commercial substance, a gain is recognized if:

Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively. Assuming that the exchange HAS commercial substance, Alamos would record a gain/(loss) of:

Alamos Co. exchanged equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively. Assuming that the exchange LACKS commercial substance, Alamos would record a gain/(loss) of:

Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange HAS commercial substance, Horton would record land-new at and record a gain/(loss) of:

Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming that the exchange LACKS commercial substance, Horton would record land-new at and record a gain/(loss) of:

Bloomington Inc. exchanged land for equipment and $3,000 in cash. The book value and the fair value of the land were $104,000 and $90,000, respectively. Bloomington would record equipment at and record a gain/(loss) of: