![arianawelsh123l](/avatars/37158.jpg)
arianawelsh123l
20.12.2019 •
Business
Two construction companies, dakota and carolina, are in the construction business. each owns a tract of land being held for development, but each company believes that the other's land is better suited to enhance the success of each planned development. accordingly, they agree to exchange their land and have the following information:
dakota's carolina's
land land
cost and book value $400,000 $250,000
fair value based upon appraisal $500,000 $450,000
the exchange of land was made, and based on the difference in appraised fair value, carolina paid $50,000 cash to dakota.
refer to exhibit 10-1. after the exchange, dakota should record its newly acquired land on its books at
a. $400,000
b. $300,000
c. $500,000
d. $450,000
Solved
Show answers
More tips
- L Leisure and Entertainment How to Choose a Program for Cutting Music?...
- A Auto and Moto How to choose the right drive for your BMW...
- L Leisure and Entertainment How to Choose the Perfect Gift for Men on February 23rd?...
- H Health and Medicine How to Treat Whooping Cough in Children?...
- H Health and Medicine Simple Ways to Lower Cholesterol in the Blood: Tips and Tricks...
- O Other How to Choose the Best Answer to Your Question on The Grand Question ?...
- L Leisure and Entertainment History of International Women s Day: When Did the Celebration of March 8th Begin?...
- S Style and Beauty Intimate Haircut: The Reasons, Popularity, and Risks...
- A Art and Culture When Will Eurovision 2011 Take Place?...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
Answers on questions: Business
- B Business Which of the following represent possible conflicts of interest...
- B Business Fvgyhhrhrhyygdxcfdgbnjiu...
- B Business Firm K is planning on merging with Firm L. Firm K currently has 5,500 shares of stock outstanding at a market price of $28 a share. Firm L has 500 shares outstanding at a price...
- B Business Stokan Products, Inc., has a Antennae Division that manufactures and sells a number of products, including a standard antennae that could be used by another division in the company,...
- B Business ABC will purchase a machine that will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has an...
- B Business Tamarisk Company is negotiating to lease a piece of equipment to MTBA, Inc. MTBA requests that the lease be for 9 years. The equipment has a useful life of 10 years. Tamarisk...
- B Business An online travel agency such as travelocity is an example of a(n) a) supplier b) consumer c) intermediary d) experience...
- B Business Our relationship with the law is best described by...
- P Physics What is ohm s law and an atom and conditioner...
- M Mathematics Despeja al perimetro de la formula del area de un hexagono regular A=p*a/2...
Ответ:
d. $450,000
Explanation:
Land of both Dakota and Carolina will be recorded on fair value rather than their cost or book value in their books.
Dakota will record Land at $500,000 and
Carolina will record Land at $450,000
On Exchange Dakota will get $50,000 as cash and Land valued on $450,000
So Dakota will record its newly acquired land in its books on fair value i.e $450,000
Ответ: