E $10-18$

Nonmonetary exchange L$010-6$

The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable

parcel located farther from residential areas. Tinsley carried the land at its original cost of $$30,000.$ According to

an independent appraisal, the land currently is worth $$72,000.$ Tinsley paid $$14,000$ in cash to complete the

transaction.

Required:

What is the fair value of the new parcel of land received by Tinsley?

Prepare the journal entry to record the exchange assuming the exchange has commercial substance.

Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.

Prepare the journal entry to record the exchange except that Tinsley received $$9,000$ in the exchange, and the

exchange lacks commercial substance.