Question
Manama Co. and Muharraq Co. have an exchange with no commercial substance . The asset given up by Manama has a book value of $120,000
Manama Co. and Muharraq Co. have an exchange with no commercial substance. The asset given up by Manama has a book value of $120,000 and a fair value of $135,000. The asset given up by Muharraq has a book value of $220,000 and a fair value of $200,000. Cash of $65,000 is received by Muharraq. What amount should Manama record for the asset received?
| A. | $200,000 | |
| B. | $135,000 | |
| C. | $185,000 | |
| D. | $195,000 |
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Laurence Johnson, Joseph R. Razek, Gordon A. Hosch
6th Edition
0132366355, 978-0132366359
