Question 7 (3 points)

BRAVO Limited entered into the following exchange of assets transactions during the financial year end 31 December

2021.

Transaction #1

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A machine with a carrying amount of R200 000 owned by BRAVO Limited is exchanged for another machine with a carrying amount of R190 000 in the records of BETA Limited. The fair value of the two machines cannot readily be ascertained.

Transaction #2

A motor vehicle with a carrying amount of R145 000 in the records of BRAVO Limited and a fair value of R160 000, was exchanged for a motor vehicle of DELTA Limited with a fair value of R165 000. The value of both vehicles can readily be determined due to an active market for used vehicles.

Transaction #3

BRAVO Limited exchanges a machine with a carrying amount of R300 000 and that is painted blue, for a similar machine of the same age and condition. The other machine is painted white. The fair value of the two machines are R320 000 (blue) and R335.000 (white) respectively. Since the white machines are more popular they have a higher fair value.

REQUIRED:

In each of the above mentioned transactions determine the amount at which the new asset acquired in the exchange should be measured in the financial statements of BRAVO Limited. Only type numbers, NO space, R, comma, full

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