HW _ 5 PP&E

HW _ 5 PP&E - Homework #5: Property, Plant and...

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Homework #5 : Property, Plant and Equipment (Ch 10 and Ch 11), due on March 3. Problem 1: Spring Inc. entered into two transactions, as follows: 1. Spring , Inc. exchanged land and cash of $6,500 for equipment. The land had a book value of $45,000 and a fair value of $34,000. 2. Spring Inc. exchanged a dust-scrubbing piece of equipment for another version of the same type of equipment and received $12,000 cash. The old dust scrubber cost $76,200 and had a book value of $54,500. The new dust scrubber had a fair value of $58,500. Required: Prepare the journal entries for these transactions. Assume each exchange has commercial substance.
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Summer Industries began construction of a new facility and took out a $1,500,000, 8% construction loan on April 1, 2011. On December 31, 2011, the facility was completed and the construction loan was repaid. Summer made payments to the general contractor of $400,000 on April 1, $900,000 on August 31, and $500,000 on December 31. Required:
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HW _ 5 PP&E - Homework #5: Property, Plant and...

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