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The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley
The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $87,500. According to an independent appraisal, the land currently is worth $210,000. Tinsley paid $30,000 in cash to complete the transaction.
Prepare the journal entry to record the exchange except that Tinsley received $42,000 in the exchange, and the exchange lacks commercial substance.
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