Question

Swifty Inc. and Blossom Co. have an exchange with no commercial substance. The asset given up by Swifty Inc. has a book value of $57000 and a fair value of $92000. The asset given up by Blossom Co. has a book value of $122000 and a fair value of $107000. Boot of $27000 is received by Blossom Co. What amount should Swifty Inc. record for the asset received

Answer 1

$84,000

Step-by-step explanation:

Calculation for What amount should Swifty Inc. record for the asset received

Using this formula

Assets received=Book value+ Boot received

Let plug in the formula

Assets received= $57,000+ $27,000

Assets received=$84,000

Therefore the amount that Swifty Inc. should record for the asset received is $84,000