Manama Co, and Muharraq Co. have an exchange with no commercial substance. The asset given up by Manama has a book value of $120,000 and a fair value of $135,000. The asset given up by Muharraq has a book value of $220,000 and a fair value of $200,000. Cash of $65,000 is received by Muharraq. What amount should Manama record for the asset received? O A. $185,000 O B. $195,000 OC. $200,000 O D.$135,000
Manama Co, and Muharraq Co. have an exchange with no commercial substance. The asset given up by Manama has a book value of $120,000 and a fair value of $135,000. The asset given up by Muharraq has a book value of $220,000 and a fair value of $200,000. Cash of $65,000 is received by Muharraq. What amount should Manama record for the asset received? O A. $185,000 O B. $195,000 OC. $200,000 O D.$135,000
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 37CE
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intermediate accounting
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Transcribed Image Text:Manama Co. and Muharraq Co. have an exchange with no commercial substance. The asset given up by Manama has a book value of $120,000 and a fair value of $135,000.
The asset given up by Muharraq has a book value of $220,000 and a fair value of $200,000. Cash of $65,000 is received by Muharraq. What amount should Manama record for the
asset received?
O A. $185,000
O B. $195,000
OC. $200,000
O D. $135,000
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