Question
Poor Inc. exchanges one of its used assets and some cash for another companys used asset. The exchange has NO commercial substance and has the
Poor Inc. exchanges one of its used assets and some cash for another companys used asset. The exchange has NO commercial substance and has the following details:
| Item | Amount |
|---|---|
| Book value of asset given up | $618,000 |
| Fair value of asset given up | $695,000 |
| Cash given | $199,000 |
| Book value of asset received | $665,000 |
What amount should Poor Inc. record for the asset received?
$817,000
$665,000
$894,000
$695,000
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
