Bogus Co. exchanged Building 42 which has an appraised value of $4,800,000, a co
ID: 2415546 • Letter: B
Question
Bogus Co. exchanged Building 42 which has an appraised value of $4,800,000, a cost of $7,590,000, and accumulated depreciation of $3,600,000 for Building X belonging to Good Co. Building X has an appraised value of $4,512,000, a cost of $9,030,000, and accumulated depreciation of $4,752,000. The correct amount of cash was also paid. Assume depreciation has already been updated.
How much gain or loss did Good record, assuming no commercial substance?
0 gain/loss
234,000 gain
48,600 gain
None of the above
0 gain/loss
234,000 gain
48,600 gain
None of the above
Explanation / Answer
$234000 gain
explaination
cost of buliding $9030000
Accumulated deprciation $4752000
value of the buliding $4278000
Appraisal value $4512000
gain in asset $234000 ($4512000 - $4278000)