ch10-assetexchange(编辑修改稿)

ch10-assetexchange(编辑修改稿)内容摘要：

hand market, indicates that the trucks have a fair market value of $49,000. In addition to the trucks, interstate must pay $17,000 cash for the land. Valuation Chapter 108 Exchange – Gain Situation Illustration (with mercial substance): Determination of gain (loss): Fair value of trucks exchanged $49,000 Less: Book value of trucks exchanged (42,000) Gain on the exchange 7,000 The cost of the land to Interstate is puted as follows: Fair value of trucks exchanged $49,000 Cash paid 17,000 Cost of land $66,000 The journal entry is: Land 66,000 Accumulated depreciation – trucks 22,000 Trucks 64,000 Gain on disposal of trucks 7,000 Cash 17,000 Chapter 109 Exchange – Gain Situation Illustration (without mercial substance): No cash received A gain is not recognized Rationale: to avoid firms to engage in swapping assets to create ‘paper profit’ Valuation Chapter 1010 Exchange – Gain Situation Illustration (without mercial substance – n。