Bloomington Inc. exchanged land for equipment and $3,000 in cash. The book value and the...
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Bloomington Inc. exchanged land for equipment and $3,000 in cash. The book value and the fair value of the land were $104,000 and $90,000, respectively. Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss) on exchange of assets in the amounts of:
Equipment Gain/(loss) a. $ 87,000 $ 3,000 b. $ 104,000 $ (5,000 ) c. $ 87,000 $ (14,000 ) d. None of these answer choices are correct.
why do you take the 90,000 and minus it from the 3,000? can this be all explained thank you
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