What is Evergreen's realized and recognized gain on these financial accounting question? Evergreen Solutions exchanges machinery in a like-kindexchange. Evergreen receives machinery with a fair marketvalue of $45,000 and transfers machinery worth $35,000(adjusted basis of $20,000) and cash of $10,000.What is Evergreen's realized and recognized gain?

Step 1: Definition of Realized and Recognized GainRealized Gain: The difference between the fair…

Answered: Evergreen Solutions exchanges machinery…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 37CE

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What is the result of this exchange on these financial accounting question?
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Company A had a machine with a carrying amount of P450,000. Company B had a delivery vehicle with a carrying amount of P300,000. Companies A and B exchanged the machine and vehicle, and Company B paid an additional P90,000 cash as part of the exchange. Assume that the fair value of the delivery vehicle is P420,000. The exchange has commercial substance. How much gain or loss should be recorded by Company B?
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Evergreen Solutions exchanges machinery in a like-kind exchange. Evergreen receives machinery with a fair market value of $45,000 and transfers machinery worth $35,000 (adjusted basis of $20,000) and cash of $10,000. What is Evergreen's realized and recognized gain?