Bogus Co. exchanged Building 42 which has an appraised value of $4,800,000, a co
ID: 2416915 • 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. What gain or loss did Bogus recognize on the exchange, assuming no commercial substance
48,600 loss
24,000 gain
0 gain/loss
none of the above
Explanation / Answer
none of the above
Fair value of Building 42 48,00,000 Fair value of Building X 4512000 Cash received 2,88,000