Question
Fisher holds land with a book value of $150,000 and a fair value of $225,000. Fisher trades this land to Asbury for similar land. Because
Fisher holds land with a book value of $150,000 and a fair value of $225,000. Fisher trades this land to Asbury for similar land. Because Fishers land is more valuable, Asbury pays Fisher an additional $75,000 cash.
a. Assuming the transaction has commercial substance, what value would Fisher record for the new land?
b.Assuming the transaction lacks commercial substance, what value would Fisher record for the new land?
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
8th Edition
0030182689, 978-0030182686
