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P&Q Ltd. traded land that was intended to be used for parking for another piece of land owned by V&W Corp. P&Q intends to use
P&Q Ltd. traded land that was intended to be used for parking for another piece of land owned by V&W Corp. P&Q intends to use the new land to build a warehouse. Both companies provided a fair value appraisal to the other party for the land given up. The land given up by each entity had the following cost and fair values: P&Q Ltd. V&W Corp. Original cost $ 40,000 $ 80,000 Fair value 100,000 102,000 Which one of the following statements is true regarding this land transfer, assuming both entities report under IFRS? A Both companies will record the land received at the fair value of the land given up. B P&Q must record the land received at $102,000. C V&W must record the land received at $100,000. D P&Q must record the land received at $40,000
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