Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from Ivanhoe Company for Marigold Corp.'s existing computer having a fair value of $438000 and an undepreciated cost of $407400 recorded on its books. The transaction has no commercial substance. How much gain should Marigold recognize on this exchange, and at what amount should the acquired computer be recorded, respectively? O $30600 and $303000 O $135000 and $407400 O $o and $272400 O $1508 and $183108

Marigold Corp. received $135000 in cash and a used computer with a fair value of $303000 from Ivanhoe Company for Marigold Corp.'s existing computer having a fair value of $438000 and an undepreciated cost of $407400 recorded on its books. The transaction has no commercial substance. How much gain should Marigold recognize on this exchange, and at what amount should the acquired computer be recorded, respectively? O $30600 and $303000 O $135000 and $407400 O $o and $272400 O $1508 and $183108

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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