Alamos Co. exchanged equipment and $18,300 cash for similar equipment. The book value and the fair...
Alamos Co. exchanged equipment and $18,300 cash for similar
equipment. The book value and the fair value of the old equipment
were $80,100 and $90,100, respectively.
Assuming that the exchange has commercial substance, Alamos would
record a gain/(loss) of:
Multiple Choice
-
$(10,000).
-
$10,000.
-
$0.
-
$28,300.
Homework Answers
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As the exchange has commercial substance, Gain (Loss) = Fair value of old equipment - Book value of old equipment = 90,100 - 80,100 = 10,000 Option B is the answer |
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Alamos Co. exchanged equipment and $18,300 cash for similar
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