Question
Our company exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000,
Our company exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively. Assuming the exchange lacks commercial substance, which amount is correct?
Debit Land-old $90,000
Credit Land-old $90,000
Debit Land-old $95,000
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Microeconomics
Authors: Michael Parkin
6th Edition
0321112075, 9780321112071
