Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below Alvarez Reymond Carrying amount 85,000 130,000 Fair value 95,000 115,000 Cash paid by Alvarez to Reymond 15,000 How much is the initial measurement of the equipment received by Reymond if the exchange has a commercial substance?
Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below Alvarez Reymond Carrying amount 85,000 130,000 Fair value 95,000 115,000 Cash paid by Alvarez to Reymond 15,000 How much is the initial measurement of the equipment received by Reymond if the exchange has a commercial substance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Alvarez and Reymond, both NGAs, exchanged their equipment. Relevant data is presented below
|
|
Alvarez |
Reymond |
|
Carrying amount |
85,000 |
130,000 |
|
Fair value |
95,000 |
115,000 |
|
Cash paid by Alvarez to Reymond |
15,000 |
|
How much is the initial measurement of the equipment received by Reymond if the exchange has a commercial substance?
Refer to the previous question, how much is the gain (loss) recognized by Reymond?
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