Problem 15 During the year an entity exchanged an office building for a hotel with another entity. Data on outgoing asset is as follows:

Original cost $3,200,000 Accumulated depreciation $1,760,000 Fair Value $5,300,000

The fair value of the incoming asset is $5,400,000

Assuming that the entity is a publicly accountable entity and there is commercial substance, what should the hotel be recorded at?

Problem 15 options:

a)

$5,400,000

b)

$5,300,000

c)

$3,200,000

d)

$1,440,000