CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Need answer the accounting question please answer do fast and correct
Transcribed Image Text:Simmons Enterprises exchanged land and cash of $6,000 for similar land. The book
value and the fair value of the land were $80,000 and $95,000, respectively.
Assuming that the exchange has commercial substance, Simmons would record
Land-New and a Gain/(Loss) of:
Land
Gain/Loss
A. $86,000
$15,000
B. $101,000 $0
C. $86,000
$0
D. $101,000 $15,000
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