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Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively.   Assuming that the exchange has commercial substance, Horton would record land—new and a gain/(loss) on exchange of assets in the amounts of:     Land   Gain/(loss) a. $ 105,000     $ 0   b. $ 105,000     $ 10,000   c. $ 95,000     $ 0   d. $ 95,000     $ 10,000       Multiple Choice   Option A   Option B   Option C   Option D

Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively.   Assuming that the exchange has commercial substance, Horton would record land—new and a gain/(loss) on exchange of assets in the amounts of:     Land   Gain/(loss) a. $ 105,000     $ 0   b. $ 105,000     $ 10,000   c. $ 95,000     $ 0   d. $ 95,000     $ 10,000       Multiple Choice   Option A   Option B   Option C   Option D

FINANCIAL ACCOUNTING
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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Horton Stores exchanged land and cash of $5,000 for similar land. The book value and the fair value of the land were $90,000 and $100,000, respectively.
 
Assuming that the exchange has commercial substance, Horton would record land—new and a gain/(loss) on exchange of assets in the amounts of:
 

  Land   Gain/(loss)
a. $ 105,000     $ 0  
b. $ 105,000     $ 10,000  
c. $ 95,000     $ 0  
d. $ 95,000     $ 10,000  
 

 

Multiple Choice
  •  

    Option A

  •  

    Option B

  •  

    Option C

  •  

    Option D

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