Description of this paper

"Smith and Jones each own tracts of land. Becaus...

Description

Solution


Question

"Smith and Jones each own tracts of land. Because of the location of their current operations, each would prefer to have the other's land. Smith and Jones agree to exchange tracts. Jones pays Smith $36,000 based upon the following data. ...............Smith Land........Jones Land Original Cost...$270,000..........$280,000 Appraised fair value at date of exchange ................$300,000..........$264,000 Instructions (a) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction has commercial substance. (b) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction does not have commercial substance. (c) Prepare the journal entry to record the exchange on Jones?s books, assuming the transaction has commercial substance. (d) Prepare the journal entry to record the exchange on Jones?s books, assuming the transaction does not have commercial substance.

 

Paper#5825 | Written in 18-Jul-2015

Price : $25
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