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7 Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has agreed to exchange this building for a
7 Sparrow Ltd owns a building, currently carried in its accounting records at GHS 800,000. It has agreed to exchange this building for a building owned by Turner Ltd. The building currently owned by Sparrow Ltd has a fair value of GHS 1 million. The building currently owned by Turner Ltd has a fair value of GHS 1.1 million. Sparrow Ltd has agreed to pay the legal costs of the transfer which amount to GHS 10,000. According to IAS 16 Property, Plant and Equipment, at what value should the building currently owned by Turner Ltd be recorded at initially in Sparrow Ltd's accounting records? A GHS 800,000 B GHS 1 million C GHS 1.1 million D GHS 990,000
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Financial and managerial accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
1st edition
111800423X, 9781118233443, 1118016114, 9781118004234, 1118233441, 978-1118016114
