Riley Company owns a machine that cost $560,000, has a book value of $240,000, and an estimated fair value of $480,000. Fizzer Company has a machine that cost $720,000, has accumulated depreciation of $400,000, and an estimated fair value of $640,000. Riley pays Fizzer cash of $160,000. Assume the trade has commercial substance.

Question

Riley Company owns a machine that cost $560,000, has a book value of $240,000, and an estimated fair value of $480,000. Fizzer Company has a machine that cost $720,000, has accumulated depreciation of $400,000, and an estimated fair value of $640,000. Riley pays Fizzer cash of $160,000. Assume the trade has commercial substance.
Riley Company owns a machine that cost $560,000, has a book value of $240,000, and an estimated fair value of $480,000. Fizzer Company has a machine that cost $720,000, has accumulated depreciation of $400,000, and an estimated fair value of $640,000. Riley pays Fizzer cash of $160,000. Assume the trade has commercial substance.

Quizplus · Accepted Answer

The Answer of Riley Company owns a machine that cost $560,000, has a book value of $240,000, and an estimated fair value of $480,000. Fizzer Company has a machine that cost $720,000, has accumulated depreciation of $400,000, and an estimated fair value of $640,000. Riley pays Fizzer cash of $160,000. Assume the trade has commercial substance.

Riley Company Owns a Machine That Cost $560,000, Has a Book