Question
Marigold Corp. traded machinery with a book value of $ 1038780 and a fair value of $ 1791000 . It received in exchange from Ivanhoe
Marigold Corp. traded machinery with a book value of $1038780 and a fair value of $1791000. It received in exchange from Ivanhoe Company a machine with a fair value of $1629000 and cash of $181000. Ivanhoe's machine has a book value of $1710450. What amount of gain should Marigold recognize on the exchange (assuming lack of commercial substance)?
$75222
$752220
$181000
$ -0-
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Financial and Managerial Accounting
Authors: John J Wild, Ken W. Shaw
8th edition
1260247856, 978-1260247855
