R&R Corporation trades a parcel of land to OBX Corp for a similar parcel of land.  You may assume this transaction lacks commercial substance.  The following information is applicable to this scenario:

The old parcel of land had a book value of: $                 200,000

The old parcel of land had a fair value of: $                 150,000

OBX paid Cash to R&R for the following amount in addition to transferring their own parcel of land: $75,000

 

What is the amount of Gain recognized on the above non-monetary exchange?  Enter the amount as a positive whole number or Zero if no gain was recognized.

What is the journal entry needed for the non-monetary exchange?

Answer rating: 100% (QA)

ExchangeNo commercial substance If a property is acquired in ... View the full answer