Exchange deemed to lack commercial substance, Accounting Basics

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Exchange deemed to lack commercial substance

Escape Inc. exchanged a tractor with a carrying amount of $36,000 and a fair value of $60,000 for another tractor and $15,000 cash. The exchange is deemed to lack commercial substance. The fair value of the truck received was $45,000. At what amount should Escape record its new tractor?

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Accounting Basics: Exchange deemed to lack commercial substance

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Accounting Basics: Exchange deemed to lack commercial substance

Reference No:- TGS057288

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Minimum transfer price that heating division accept

Q : Allen break-even point in units

Q : Working capital to pay retention bonuses

Q : Cost per equivalent units for materials

Q : Exchange deemed to lack commercial substance

Q : What should be the cost basis for the building

Q : What was its cost of goods sold

Q : Balance in the land account

Q : Weighted average shares outstanding introduction

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Exchange deemed to lack commercial substance

Reference No:- TGS057288

Recent Questions Asked Accounting Basics

Q : Minimum transfer price that heating division accept

Q : Allen break-even point in units

Q : Working capital to pay retention bonuses

Q : Cost per equivalent units for materials

Q : Exchange deemed to lack commercial substance

Q : What should be the cost basis for the building

Q : What was its cost of goods sold

Q : Balance in the land account

Q : Weighted average shares outstanding introduction

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