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 $$68,750.$ According to an independent appraisal, the land currently is worth $$165,000.$ Tinsley paid $$29,000$ in cash to complete the transaction.The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located fartherThe 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 $$68,750.$ According to an independent appraisal, the land currently

is worth $$165,000.$ Tinsley paid $$29,000$ in cash to complete the transaction.

Required:

What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?

Prepare the journal entry to record the exchange assuming the exchange has commercial substance.

Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.

Complete this question by entering your answers in the tabs below.

What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?

Fair value

from residential areas. Tinsley carried the land at its original cost of $$68,750.$ According to an independent appraisal, the land currently

is worth $$165,000.$ Tinsley paid $$29,000$ in cash to complete the transaction.

Required:

What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?

Prepare the journal entry to record the exchange assuming the exchange has commercial substance.

Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2$ and $3$

What is the fair value of the new parcel of land received by Tinsley assuming the exchange has commercial substance?