Question 19 (Plant Assets An exchange of similar productive assets was completed

Question

Question 19 (Plant Assets An exchange of similar productive assets was completed between Company A and Company Z Pmor to the exchange, Company A owned Asset A; Company Z owned Asset Z. Companies A and swapped Assets A and Z. Company A also paid $44,000 cash to Company Z in the exchange Additional information: Book Value Market Value Asset A $60,000 $55,000 Asset Z $94,000 $99,000 In recording the exchange, Company A will report: a à loss of $5,000 . a portion of a $5,000 loss c. a gain of $44,000 d. a loss of $99,000 e. neither a gain nor a loss me samoleexam.htm

Explanation / Answer

Loss reported by Company A = 60000+44000-99000 = $5000 Option A is correct

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