ABC Inc. and XYZ Co. have an exchange with no commercial substance. The asset given up by ABC Inc. has a book value of P48,000 and a fair value of P60,000. The asset given up by XYZ Co. has a book value of P80,000 and a fair value of P76,000. Boot of P16,000 is received by XYZ Co. What amount should ABC Inc. record for the asset received? What amount should XYCZ Co. record for the asset received?

ABC Inc. and XYZ Co. have an exchange with no commercial substance. The asset given up by ABC Inc. has a book value of P48,000 and a fair value of P60,000. The asset given up by XYZ Co. has a book value of P80,000 and a fair value of P76,000. Boot of P16,000 is received by XYZ Co. What amount should ABC Inc. record for the asset received? What amount should XYCZ Co. record for the asset received?

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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