Mod7Discussion

Mod7Discussion - In both transactions with and without...

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For Stan Lott there is quite a difference in the two forms of exchange that he is wishing to evaluate. His first transaction directly involved commercial substance. This means that the products exchanged in his transaction either had similar or dissimilar properties, which will ultimately affect the future cash flow. Within these properties, there was an exchange of value that must be record in the general ledger to debit accumulated depreciation and any losses or gains to PP&E assets.
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Unformatted text preview: In both transactions with and without commercial substance, it required that all losses are recorded immediately. In his second transactions with non-commercial substance, the transaction does not have a significant impact on cash flows in the future. With non-commercial transactions, there is normally some sort of even trade and/or boot (supplemental payment) that take place. If a boot is received, this needs to be recognized immediately as a gain....
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This note was uploaded on 04/06/2011 for the course ACC 300 taught by Professor Barga during the Spring '11 term at St. Leo.

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