Question
Horton Stores exchanged land and cash of $5,600 for similarland. The book value and the fair value of the land were $88,900and $100,600, respectively. Assuming
Horton Stores exchanged land and cash of $5,600 for similarland. The book value and the fair value of the land were $88,900and $100,600, respectively.
Assuming that the exchange lacks commercial substance, Hortonwould record land—new and a gain/(loss) on exchange of assets inthe amounts of:
Land Gain/(loss)
a.$106,200 $0
b.$106,200 $11,700
c.$94,500 $0
d.$94,500 $11,700
Horton Stores exchanged land and cash of $5,600 for similarland. The book value and the fair value of the land were $88,900and $100,600, respectively.
Assuming that the exchange lacks commercial substance, Hortonwould record land—new and a gain/(loss) on exchange of assets inthe amounts of:
Land Gain/(loss)
a.$106,200 $0
b.$106,200 $11,700
c.$94,500 $0
d.$94,500 $11,700
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Market Practice In Financial Modelling
Authors: Tan Chia Chiang
1st Edition
9789814366540
