Maxa Marina exchanged a boat with a cost of $80,000 (now 75% depreciated) and fair value...
Maxa Marina exchanged a boat with a cost of $80,000 (now 75% depreciated) and fair value of $25,000 for another boat with a current fair value of $27,000. No cash was paid or received. The new boat will perform the same function as the old boat, but cash flows are expected to last for 5 years longer with the new boat. At what value should Maxa record the new boat?
Homework Answers
Solution:
Value to be recorded the new boat = Fair Value of asset given if available
Therefore, Value to be recorded the new boat = $25,000
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Maxa Marina exchanged a boat with a cost of $80,000 (now 75%
depreciated) and fair value...
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