Kieso, Intermediate Accounting, 16e ATE 95 Swifty Inc. and Cullumber Co. have an

Question

Kieso, Intermediate Accounting, 16e ATE 95 Swifty Inc. and Cullumber Co. have an exchange with no commercial substance. The asset given up by Swifty Inc. has a book value of $50500 and a fair value of $85500. The asset given up by Cullumber Co. has a book value of $115500 and a fair value of $100500. Boot of $20500 is received by Cullumber Co. What amount should Cullumber Co. record for the asset $ 85500 O $ 71000 $100500 O $115500 Show Work is REQUIRED for this question: Question Attempts: o of 2 used sSAVE FOR LATER SUBHKET ANDWER Earn Maximum Points available only if you answer this question correctly in your first attempt 18

Explanation / Answer

Answer is A. 85,500

Always on acqusition of asset in exchange of asset, asset shall be recorded at Fair value.i.e., Swifty Inc has been given the asset to Cullumber inc which is having a fair value at 85,500.

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