ACC 304 All Assignments ACC 304 All Assignments | Page 180

Accounting recognition should be given to some or all of the gain
realized on a nonmonetary exchange of plant assets except when the
exchange has
no commercial substance and additional cash is paid.
ACC 304 Week 5 Midterm Part 1 (Set 3)
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midterm-part-1-(set-3)
1) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has
a fair value of $1,500,000.
The journal entry to adjust the plant assets to fair value and record
revaluation surplus in year one will include a
2) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At