Minor Baseball Company had a player contract with Doe that was recorded in its accounting records at

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Minor Baseball Company had a player contract with Doe that was recorded in its accounting records at $145,000. Better Baseball Company had a player contract with Smith that was recorded in its accounting records at $140,000. Minor traded Doe to Better for Smith by exchanging each player’s contract. The fair value of each contract was $150,000.

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What amounts should each company show in its accounting records for the exchange of player contracts?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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