Allen Inc. exchanged land and cash of $4,500 for similar land. The book value and...
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Accounting
Allen Inc. exchanged land and cash of $4,500 for similar land. The book value and the fair value of the old land were $89,900 and $100,100, respectively. Assuming that the exchange lacks commercial substance, Allen would record equipmentnew and a gain/(loss) on exchange of assets in the amounts of:
Land
Gain/(loss)
a.
$
104,600
$
0
b.
$
104,600
$
10,200
c.
$
94,400
$
0
d.
$
94,400
$
10,200
Multiple Choice
Option A
Option D
Option C
Option B
Answer & Explanation
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