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Colt Football Co. had a player contract with Watts that is recorded in its books at $4,800,000 on July 1, 2012. Day Football Co.

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20. Colt Football Co. had a player contract with Watts that is recorded in its books at $4,800,000 on July 1, 2012. Day Football Co. had a player contract with Kurtz that is recorded in its books at $6,000,000 on July 1, 2012. On this date, Colt traded Watts to Day for Kurtz and paid a cash difference of $600,000. The fair value of the Kurtz contract was $7,200,000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Colt's books at
A) $7,200,000.
B) $6,000,000.
C) $6,600,000.
D) $5,400,000.
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20. Colt Football Co. had a player contract with Watts that is recorded in its books at
$4,800,000 on July 1, 2012. Day Football Co. had a player contract with Kurtz that is
recorded in its books...

This question was asked on Oct 31, 2011 and answered on Nov 01, 2011.

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