Crane Limited, a private manufacturing company, sells land worth $$22,000$ to another private

company, Swifty Limited. The companies are related because the same shareholder has a $70\%$

equity interest in each company. $($The rest of the shares are not owned by related parties.$)$

The land has a carrying value of $$16,500$ on Crane's books. In exchange, Swifty, also a

manufacturing company, transfers to Crane a building that cost $$32,000$ and has a net book

value of $$12,800$ at the date of exchange.

Your answer is correct.

Assess whether the transaction is in the ordinary course of business for Crane and Swifty.

This transaction

in the ordinary $($normal$)$ course of business

eTextbook and Media

List of Accounts