Question
Horton Stores exchanged land and cash of $4,000 for similar land. The book value and the fair value of the land were $89,500 and $100,300,
Horton Stores exchanged land and cash of $4,000 for similar land. The book value and the fair value of the land were $89,500 and $100,300, respectively. Assuming that the exchange lacks commercial substance, Horton would record landnew and a gain/(loss) on exchange of assets in the amounts of:
| Land | Gain/(loss) | ||||||
| a. | $ | 104,300 | $ | 0 | |||
| b. | $ | 104,300 | $ | 10,800 | |||
| c. | $ | 93,500 | $ | 0 | |||
| d. | $ | 93,500 | $ | 10,800 | |||
Multiple Choice
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Option A
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Option B
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Option C
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Option D
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
