Project 3 Acc 550 - Debit Credit Debit Commercial substance...

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Definitions Commercial substance: Recognize gain or loss. Cost of asset received = fair value of asset surrendered + cash paid No Commercial substance: No gain or loss recognized. Cost of asset received = net carrying value of asset surrende Smith Land exchanged Cost  270,000  Fair value  300,000  Jones Land exchanged Cost  280,000  Fair value  264,000  Cash paid  36,000  Smith Entries  Jones Entries 
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Unformatted text preview: Debit Credit Debit Commercial substance New land 264,000 300,000 Old land 270,000 Cash 36,000 Gain or loss on sale 30,000 16,000 No Commercial substance New land 234,000 316,000 Old land 270,000 Cash 36,000 – cash received. ered + cash paid – cash received. Credit 280,000 36,000 280,000 36,000...
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This note was uploaded on 05/23/2011 for the course ACCOUTNING 550 taught by Professor Abner during the Spring '11 term at DeVry Houston.

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Project 3 Acc 550 - Debit Credit Debit Commercial substance...

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