Item 20 A company exchanged land and cash of $5,800 for similar land. The book value and the fair value of the land were $89,800 and $101,000, respectively. Assuming that the exchange has commercial substance, the company would record land—new and a gain on exchange of assets in the amounts of: Land Gain a. $ 106,800 $ 0 b. $ 106,800 $ 11,200 c. $ 95,600 $ 0 d. $ 95,600 $ 11,200 Multiple Choice

Item 20 A company exchanged land and cash of $5,800 for similar land. The book value and the fair value of the land were $89,800 and $101,000, respectively. Assuming that the exchange has commercial substance, the company would record land—new and a gain on exchange of assets in the amounts of: Land Gain a. $ 106,800 $ 0 b. $ 106,800 $ 11,200 c. $ 95,600 $ 0 d. $ 95,600 $ 11,200 Multiple Choice

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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Item 20

A company exchanged land and cash of $5,800 for similar land. The book value and the fair value of the land were $89,800 and $101,000, respectively.

Assuming that the exchange has commercial substance, the company would record land—new and a gain on exchange of assets in the amounts of:

	Land	Gain
a.	$ 106,800	$ 0
b.	$ 106,800	$ 11,200
c.	$ 95,600	$ 0
d.	$ 95,600	$ 11,200

Multiple Choice

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