11. In recording exchanges of assets, which statement is not true? a. When boot is received for a similar asset, a loss is recognized in full while a gain is recognized in proportion to the boot received. b. When the fair market value of a dissimilar asset being surrendered is less than its book value, the cost of the asset acquired is equal to the fair market value of the asset surrendered less boot received. c. When the fair market value of a dissimilar asset being surrendered is greater than the book value, the cost of the asset acquired is equal to the book value of the asset surrendered plu boot received less gain recognized. d. When boot is paid for a similar asset, a gain is not recognized and a loss is recognized in full.

11. In recording exchanges of assets, which statement is not true? a. When boot is received for a similar asset, a loss is recognized in full while a gain is recognized in proportion to the boot received. b. When the fair market value of a dissimilar asset being surrendered is less than its book value, the cost of the asset acquired is equal to the fair market value of the asset surrendered less boot received. c. When the fair market value of a dissimilar asset being surrendered is greater than the book value, the cost of the asset acquired is equal to the book value of the asset surrendered plu boot received less gain recognized. d. When boot is paid for a similar asset, a gain is not recognized and a loss is recognized in full.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

11. In recording exchanges of assets, which statement is not true?
a. When boot is received for a similar asset, a loss is recognized in full while a gain is
recognized in proportion to the boot received.
b. When the fair market value of a dissimilar asset being surrendered is less than its book
value, the cost of the asset acquired is equal to the fair market value of the asset
surrendered less boot received.
c. When the fair market value of a dissimilar asset being surrendered is greater than the book
value, the cost of the asset acquired is equal to the book value of the asset surrendered plus
boot received less gain recognized.
d. When boot is paid for a similar asset, a gain is not recognized and a loss is recognized in
full.

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