Bramble Corp. traded machinery with a book value of $764500 and a fair value of $695000....

 

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Bramble Corp. traded machinery with a book value of $764500 and a fair value of $695000. It received in exchange from Cullumber Company a machine with a fair value of $822000. Bramble also paid cash of $127000 in the exchange. Cullumber's machine has a book value of $764500. What amount of gain or loss should Bramble recognize on the exchange (assume the transaction lacks commercial substance)? Bramble Corp. traded machinery with a book value of $764500 and a fair value of $695000. It received in exchange from Cullumber Company a machine with a fair value of $822000. Bramble also paid cash of $127000 in the exchange. Cullumber's machine has a book value of $764500. What amount of gain or loss should Bramble recognize on the exchange (assume the transaction lacks commercial substance)?

Answer rating: 100% (QA)

To determine the amount of gain or loss that Bramble should recognize on the exchange we need to app... View the full answer