Que Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Table 1-59 Land Gain/Loss A. $ 94,400 $ 10,400 B. $1,04,800 $0 C. $ 94,400 $0 D. $1,04,800 $ 10,400 Caption
Que Horton Stores exchanged land and cash of $4,400 for similar land. The book value and the fair value of the land were $90,000 and $100,400, respectively. Assuming that the exchange has commercial substance, Horton would record land-new and a gain/(loss) of: Table 1-59 Land Gain/Loss A. $ 94,400 $ 10,400 B. $1,04,800 $0 C. $ 94,400 $0 D. $1,04,800 $ 10,400 Caption
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 7BCRQ
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General Accounting Question
Transcribed Image Text:Que
Horton Stores exchanged land and cash of $4,400 for similar land. The
book value and the fair value of the land were $90,000 and $100,400,
respectively. Assuming that the exchange has commercial substance,
Horton would record land-new and a gain/(loss) of:
Table 1-59
Land
Gain/Loss
A.
$ 94,400
$ 10,400
B.
$1,04,800
$0
C.
$ 94,400
$0
D.
$1,04,800
$ 10,400
Caption
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