A company exchanged land for equipment and received $2,600 in cash. The book value and the...

  

Transcribed Image Text:

A company exchanged land for equipment and received $2,600 in cash. The book value and the fair value of the land were $105,400 and $89,100, respectively. Assuming that the exchange has commercial substance, the company would record equipment and a gain(loss) on exchange of assets in the amounts of a. b. Equipment $ 86,500 $ 105,400 Gain (loss) $ 2,600 $ (2,600) C. $ 86,500 $ (16,300) d. None of the other answer choices are correct. Multiple Choice Option a Option c. Option d. Option b. A company exchanged land for equipment and received $2,600 in cash. The book value and the fair value of the land were $105,400 and $89,100, respectively. Assuming that the exchange has commercial substance, the company would record equipment and a gain(loss) on exchange of assets in the amounts of a. b. Equipment $ 86,500 $ 105,400 Gain (loss) $ 2,600 $ (2,600) C. $ 86,500 $ (16,300) d. None of the other answer choices are correct. Multiple Choice Option a Option c. Option d. Option b.

Answer rating: 100% (QA)

To determine the amounts to be recorded for equipment and gainloss on the ... View the full answer