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 | $ | 49,700 |
|
| $ | 61,000 |
|
| $ | 14,300 |
|
| Case B | $ | 40,000 |
|
| $ | 35,100 |
|
| $ | 7,100 |
|
In Case B, Grand Forks would record a gain/(loss) of:
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Understanding Financial Accounting
Authors: Christopher D. Burnley
3rd Canadian Edition
1119715474, 9781119715474
