Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 2, 2020, grapes company sold equipment

On January 2, 2020, GRAPES Company sold equipment with a carrying amount of 480,000 in...

60.1K

Verified Solution

Question

Accounting

On January 2, 2020, GRAPES Company sold equipment with a carrying amount of 480,000 in exchange for a 600,000 non-interest bearing note due Jan 2, 2023. There was no established exchange price for the equipment. The prevailing rate of interest for a note of this type at January 2, 2020 was 10%. The present value of 1 at 10% for three periods is 0.75. How much should GRAPES report as gain(loss) on sale of equipment in its 2020 income statement?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

vision from the special senses

Medical Sciences
Q

1. Darwins theory of evolution by natural selection is the logical outcome of 4 testable predictions...

Biology
Q

What are the most important drivers (or factors) that motivate firms to engage in global sourcing?...

Economics
Q

2. Define a relation R on pairs of real numbers as follows: (a, b)R(c, d) iff...

Advance Math
Q

The word "pegmatite" meansextremely large crystalstwo different cooling histories of a magmacrystals too small to...

Biology
Q

If f(x) = 3x + 2 and g(x) = 2x - 2, what is (f-...

Basic Math
Q

The Conjugate Zeros Theorem says that the complex zeros of a polynomial with real coefficients...

Algebra
Q

1 point A cable hangs between two poles of equal height and 37 feet apart...

Algebra
Q

5. Prepare the journal entry for the following transaction....

Accounting
Q

1-14 Martinez Companys relevant range of production is 7,500 units to 12,500 units....

Accounting
Q

What is operating leverage? What effect does operating leverage have on a companys profit? Illustrate...

Accounting
Q

A US bank has made two term loans: one in $ (to a US borrower)...

Finance