Question
Lunar Inc. and Cosco Corp. agree to exchange equipment on 12/31 of the current year. This exchange will not impact future cash flows for either
Lunar Inc. and Cosco Corp. agree to exchange equipment on 12/31 of the current year. This exchange will not impact future cash flows for either company. Mars receives $55,000 in cash as part of the exchange. Listed below is information relating the assets being exchanged by the respective companies.
| Lunar | Cosco | ||
| Cost | $300,000 | $400,000 | |
| Accumulated Depreciation | $30,000 | $100,000 | |
| Fair Value | $265,000 | $320,000 |
What is the amount of gain recorded by Cosco on the exchange?
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Blood Audit
Authors: Edward S Blythe
1st Edition
1480180394, 978-1480180390
