Question
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance. Old Equipment Cash Book Value
Below is information relative to an exchange of similar assets by Grand Forks Corp. Assume the exchange has commercial substance.
| Old Equipment | Cash | ||||||||||
| Book Value | Fair Value | Paid | |||||||||
| Case A | $ | 50,600 | $ | 61,000 | $ | 14,500 | |||||
| Case B | $ | 40,900 | $ | 36,000 | $ | 7,300 | |||||
In Case B, Grand Forks would record a gain/(loss) on exchange of assets in the amount of:
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ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook
Authors: Sterling Libs FCCA
1st Edition
1911037129, 978-1911037125
