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on january 1, year 1, Miller Corporation promises to " unconditionally" transfer a building that cost...

on january 1, year 1, Miller Corporation promises to " unconditionally" transfer a building that cost $100,000 (appraised recently at $300,000) to Valerie Company on January 1, year 2 for a boat she bought for $250,000. As of December 31, year 2, Miller still had not transferred title to the building, although it received title to the boat. How should Valerie and Miller record these transactions?
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Answer #1

ANSWER:

Fair Market Value of building 300000
Value of Boat 250000
Miller Books
Year 2
Boat 250000
Loss 50000
Building 300000
Valerie
Year 2
Building 300000
Boat 250000
Gain 50000

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