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    anthonybaby's Avatar
    anthonybaby Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 24, 2009, 09:56 PM
    land exchange
    A company owns a piece of land that originally cost $10,000 and has a fair market value
    of $8,000. It is exchanged along with $5,000 cash for another piece of land having a fair
    value of $13,000. HOw do I Jounalize it?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Aug 25, 2009, 01:02 AM

    Please see the guidelines for posting homework problems:
    Ask Me Help Desk - Announcements in Forum : Homework Help

    Can you post at least some attempt at the entry and someone can guide you from there.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #3

    Aug 25, 2009, 09:07 AM

    I fully agree with morgaine 300. However, as a guide, the GAAP requires that the recognition should be on the basis of the fair value received or the fair value given up, whichever is easily determinable. Based on this please post your answer for guidance.
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