Arlington LLC exchanged land used in its business for some new land. Arlington orginally purchased the land for $30,000. The new land had a fair market value of $36,000. Arlington also received $4,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?
Arlington LLC exchanged land used in its business for some new land. Arlington orginally purchased the land for $30,000. The new land had a fair market value of $36,000. Arlington also received $4,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Arlington LLC exchanged land used in its business for some new land. Arlington orginally purchased the land for $30,000. The new land had a fair market value of $36,000. Arlington also received $4,000 of office equipment in the transaction. What is Arlington's gain or loss recognized on the exchange?
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Land indicates a part of fixed resources held by the entity which does not show any change in its historical cost.
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