Ranger Corp. is exchanging a piece of land not currently being used for some trucks needed to meet increasing delivery demands. The land has a fair value of $250,000 and a book value of $170,000. The trucks being received from Price Corp. have a book value of $200,000 and a fair value of $190,000. In addition to the trucks, Price is providing $30,000 in cash.



(i)  Prepare the journal entry(s) to account for the exchange for Ranger Corp. assuming the exchange has commercial substance

(ii)  Prepare the journal entry(s) to account for the exchange for Ranger Corp. assuming the exchange lacks commercial substance

Answer rating: 100% (QA)

i Assuming the exchange has commercial substance To account for the exchange Ranger Corp needs to record the fair value of the land given up the fair ... View the full answer