Question
During the year an entity exchanged an office building for a hotel with another entity. Data on outgoing asset is as follows: Original cost $3,200,000
During the year an entity exchanged an office building for a hotel with another entity. Data on outgoing asset is as follows:
Original cost $3,200,000
Accumulated depreciation $1,760,000
Fair Value $5,300,000
The fair value of the incoming asset is $5,400,000
Assuming that the entity is a publicly accountable entity and there is commercial substance, what should the hotel be recorded at?
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0073379616, 73379611, 978-0697789938
