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I know the answer for 92 is A and for 93 it is C. But I dont understand why you would record equipment for question

I know the answer for 92 is A and for 93 it is C. But I dont understand why you would record equipment for question 92 at book value plus cash paid while in 93 you record equipment at fair value plus cash paid. Why are they different?
Also, why do you record a loss for question 93 when you do not realize a gain or loss for exhanges with no commercial value? Cash is paid and not received so should the 25% rule of cash received not apply?
Please someone explain this to me... image text in transcribed
image text in transcribed
Use the following information to answer questions 92 &93 Below is the information relative to an exchange of assets by Stanton Company: e lacks commercial substance pany. The exchange Old Equipment Book Value Case $300,000 Case II $200,000 Fair Value $340,000 $180,000 Cash Paid $60,000 $28,000

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