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Below is the information relative to an exchange of assets by Bonita Industries. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash
Below is the information relative to an exchange of assets by Bonita Industries. The exchange lacks commercial substance.
| Old Equipment | ||||||
| Book Value | Fair Value | Cash Paid | ||||
| Case I | $473000 | $518000 | $86500 | |||
| Case II | $293000 | $258500 | $38600 | |||
Which of the following would be correct for Bonita to record in Case II?
| Record Equipment at: | Record a gain (loss) of: |
| $293000 | $4100 |
| $293000 | $(4100) |
| $297100 | $(34500) |
| $331600 | $34500 |
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Accounting Theory
Authors: Contemporary Accounting Issues
1st Edition
9780324107845
