An entity receives inventories from a counterparty in exchange for a liability based on the price of

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An entity receives inventories from a counterparty in exchange for a liability based on the price of 4000 of the entity’s own shares. At the date of receiving the inventories, the entity’s shares have a market value of $12 each.

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Measure the value of this transaction and prepare an appropriate journal entry to recognise it.

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Financial Reporting

ISBN: 9780730396413

4th Edition

Authors: Janice Loftus, Ken Leo, Sorin Daniliuc, Belinda Luke, Hong Nee Ang, Mike Bradbury, Dean Hanlon, Noel Boys, Karyn Byrnes

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Question Posted: Apr 07, 2024 12:02 AM

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An entity receives inventories from a counterparty in exchange for a liability based on the price of

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Financial Reporting

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