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Sandhill Co. traded machinery with a book value of $575000 and a fair value of $975000. It received in exchange from Bonita Industries a machine
Sandhill Co. traded machinery with a book value of $575000 and a fair value of $975000. It received in exchange from Bonita Industries a machine with a fair value of $877500 and cash of $97500. Bonita's machine has a book value of $926250. What amount of gain should Sandhill recognize on the exchange (assuming lack of commercial substance)? O $40000 O $400000 O $97500 O $-0- Sheffield County owned an idle parcel of real estate consisting of land and a factory building. Sheffield gave title to this realty to Pharoah Company as an incentive for Pharoah to establish manufacturing operations in the County. Pharoah paid nothing for this realty, which had a fair value of $205000 at the date of the grant. Pharoah should record this nonmonetary transaction as a O credit to Contribution Revenue for $205000. credit to Comprehensive Income for $205000. memo entry only. O credit to Donated Capital for $205000
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