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Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Land Gain/Loss A. $94,400 $10,400 B. $104,800 $0 C. $94,400 $0 D. $104,800 $10,400

Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Land Gain/Loss A. $94,400 $10,400 B. $104,800 $0 C. $94,400 $0 D. $104,800 $10,400

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Land Gain/Loss A. $94,400 $10,400 B. $104,800 $0 C. $94,400 $0 D. $104,800 $10,400
Transcribed Image Text:Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Land Gain/Loss A. $94,400 $10,400 B. $104,800 $0 C. $94,400 $0 D. $104,800 $10,400
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