On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds asset is referred to below
Fantastic news! We've Found the answer you've been seeking!
Question:
On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds asset is referred to below as "Asset A", and Birzeit is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Al-Quds Company (Asset A) Birzeit Company (Asset B) Original cost $200,000 $100,000 Acc. dep. to date of exchange 90,000 30,000 Fair value at date of exchange 160,000 Cash received 30,000 Cash paid 30,000 The cost of the new asset for Al-Quds Company is: 0 a. $130,000 0 b. $120,625 0 c. $90,625 0 d. $190,000
Posted Date: