owned by Caesar. The configuration of cash flows from land acquired is expected to be significantly different from the configuration of cash flows of the land exchanged. At what amount should Cleopatra record the land acquired in the exchange? *
owned by Caesar. The configuration of cash flows from land acquired is expected to be significantly different from the configuration of cash flows of the land exchanged. At what amount should Cleopatra record the land acquired in the exchange? *
Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 75P
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Cleopatra Company owns a tract of land that it purchased in 2017 for
P2,000,000. The land is held as a future plant site and has a fair value of
P3,000,000 on July 1, 2020. Caesar Company also owns a tract of land
held as a future plant site. Caesar paid P3,600,000 for the land in 2018 and
the land has a fair value of P3,800,000 on July 1, 2020. On this date,
Cleopatra exchanged its land and paid P1,000,000 cash for the land
owned by Caesar. The configuration of cash flows from land acquired is
expected to be significantly different from the configuration of cash flows
of the land exchanged. At what amount should Cleopatra record the land
acquired in the exchange? *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74e4c722-bcf9-4482-abee-77e59e05e001%2F9863b0a2-ea51-4d5c-a346-083615b83378%2Foz485c_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1 poin
Cleopatra Company owns a tract of land that it purchased in 2017 for
P2,000,000. The land is held as a future plant site and has a fair value of
P3,000,000 on July 1, 2020. Caesar Company also owns a tract of land
held as a future plant site. Caesar paid P3,600,000 for the land in 2018 and
the land has a fair value of P3,800,000 on July 1, 2020. On this date,
Cleopatra exchanged its land and paid P1,000,000 cash for the land
owned by Caesar. The configuration of cash flows from land acquired is
expected to be significantly different from the configuration of cash flows
of the land exchanged. At what amount should Cleopatra record the land
acquired in the exchange? *
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