Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of 12,000. The asset given up by Life Co. has a book value of 20,000. Cash of 4,000 is received by Life Co. What amount should Love Inc. record for the asset received? A. 20,000 B.19,000 C.16,000 D. 23,000
Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of 12,000. The asset given up by Life Co. has a book value of 20,000. Cash of 4,000 is received by Life Co. What amount should Love Inc. record for the asset received? A. 20,000 B.19,000 C.16,000 D. 23,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc. has a book value of 12,000. The asset given up by Life Co. has a book value of 20,000. Cash of 4,000 is received by Life Co. What amount should Love Inc. record for the asset received?
A. 20,000
B.19,000
C.16,000
D. 23,000
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