【文章內(nèi)容簡介】 chine with FMV of $5,000 (cost, $10,000。 Acc DEP, $3,000) is traded for land. Answer: Land is recorded @ FMV of machine (asset exchanged) Recognized loss since FMV of machine NBV of machine Dr. Land $5,000 Dr. ACC DEP 3,000 Dr. Loss 2,000 Cr. Machine $10,000 FMV (machine) Less: NBV Loss $5,000 (7,000) $2,000 To record land (received) on B/S To calculate loss Asset exchanged Asset received FMV 1+ No boot 29 C Nonmoary Exchange 5. Situation 2: a) Conditions ? Record asset received @ FMV of asset exchanged + Boot given ? G/L determination ? FMV of asset exchanged (given up) is determinable ? The transaction has mercial substance and is not to facilitate sale ? Boot given b) Accounting treatment FMV 1 + Boot given Boot given does not affect G/L calculation FMV exchanged Less: NBV exchanged G/L 30 C Nonmoary Exchange 5. Situation 2 Example: A machine with FMV of $5,000 (cost, $10,000。 Acc DEP, $3,000) and $500 cash are traded for land. Answer: Dr. Land $5,500 Dr. ACC DEP 3,000 Dr. Loss 2,000 Cr. Machine $10,000 Cr. Cash 500 FMV (machine) Less: NBV Loss $5,000 (7,000) $2,000 To record land (received) on B/S To calculate loss Asset exchanged Asset received FMV (machine) Add: boot given Land $5,000 500 $5,500 To calculate Land cost Boot given Record asset received @ FMV of asset exchanged + Boot given Recognize loss since FMV exchanged NBV exchanged FMV 1 + Boot given 31 C Nonmoary Exchange 6. Situation 3 a) Conditions b) Accounting treatment FMV 1 + Boot received ? FMV of asset exchanged (given up) is determinable ? The transaction has mercial substance and is not to facilitate sale ? Boot received ? Record asset received @ FMV of asset exchanged Boot given ? G/L determination Boot received does not affect G/L calculation FMV exchanged Less: NBV exchanged G/L 32 C Nonmoary Exchange 6. Situation 3 Example: A machine with FMV of $5,000 (cost, $10,000。 Acc DEP, $3,000) is traded for land and $500 cash. Answer: Dr. Land $4,500 Dr. ACC DEP 3,000 Dr. Loss 2,000 Dr. Cash 500 Cr. Machine $10,000 FMV (machine) Less: NBV Loss $5,000 (7,000) $2,000 To record land (received) on B/S To calculate loss Asset exchanged Asset received FMV (machine) Less: boot received Land $5,000 (500) $4,500 To calculate Land cost Boot received Record asset received @ FMV of asset exchanged Boot given Recognize Loss since FMV exchanged NBV exchanged FMV 1 + Boot received 33 C Nonmoary Exchange 7. Situation 4: a) Conditions ? FMV exchanged is not determinable。 but FMV received is determinable ? The transaction has mercial substance and is not to facilitate sale ? No boot involved ? Record asset received @ FMV of asset received ? G/L determination b) Accounting treatment FMV 2 + No boot FMV received Less: NBV exchanged G/L 34 C Nonmoary Exchange 7. Situation 4 Example: A machine (cost, $10,000。 Acc DEP, $3,000) is traded for land with a FMV of $6,000 Answer: Since FMV of machine is not determinable, use FMV of land instead Recognized loss since FMV of land NBV of machine Record Land (received) @ FMV of Land Asset exchanged Asset received Dr. Land $6,000 Dr. ACC DEP 3,000 Dr. Loss 1,000 Cr. Machine $10,000 FMV (land) Less: NBV (machine) Loss $6,000 (7,000) $1,000 To record land (received) on B/S To calculate loss FMV 2 + No boot 35 C Nonmoary Exchange 8. Situation 5: a) Conditions ? Record asset received @ FMV of asset received ? G/L calculation is determined by the difference ? FMV exchanged is not determinable but FMV received determinable ? The transaction has mercial substance and is not to facilitate sale ? Boot given b) Accounting treatment FMV 2 + Boot given FMV received Less: NBV exchanged Less: Boot given G/L 36 C Nonmoary Exchange 8. Situation 5 Example: A machine (cost, $10,000。 Acc DEP, $3,000) and $500 cash are traded for land with FMV of $6,000. Answer: Dr. Land $6,000 Dr. ACC DEP 3,000 Dr. Loss 1,500 Cr. Machine $10,000 Cr. Cash 500 FMV (land) Less: NBV Less: Boot Loss $6,000 (7,000) (500) $1,500 To record land (received) on B/S To calculate loss Asset exchanged Asset received Boot given Record asset received @ FMV of asset received Recognize loss since FMV received (NBV exchanged + Boot given) FMV 2 + Boot given 37 C Nonmoary Exchange 9. Situation 6: a) Conditions ? Record asset received @ FMV of asset received ? G/L calculation is determined by the difference ? FMV exchanged is not determinable but FMV received determinable ? The transaction has mercial substance and not to facilitate sale ? Boot received b) Accounting treatment FMV 2 + Boot received FMV received Less: NBV exchanged Add: Boot received G/L 38 C Nonmoary Exchange 9. Situation 6 Example: A machine (cost, $10,000。 Acc DEP, $3,000) is traded for land with FMV of $6,000 and $500 cash. Answer: Dr. Land $6,000 Dr. ACC DEP 3,000 Dr. Loss 500 Dr. Cash 500 Cr. Machine