Use the Following Information for Questions
Two Independent Companies

question 106

Multiple Choice

Use the following information for questions
Two independent companies, Mintz Co.and Pine Co., are in the home building business.Each owns a tract of land held for development, but each would prefer to build on the other's land.They agree to exchange their land.An appraiser was hired, and from her report and the companies' records, the following information was obtained: $$\begin{array} { l r r } & \text { Mintz's Land } & \text { Pine's Land } \\\text { Cost and book value } & \$ 192,000 & { \$ 120,000 }\\\text { Fair value based upon appraisal } & 240,000 & 210,000\end{array}$$ The exchange was made, and based on the difference in appraised fair values, Pine paid $30,000 to Mintz.The exchange lacked commercial substance.
-The new land should be recorded on Pine's books at

• A)$120,000.
• B)$150,000.
• C)$210,000.
• D)$240,000.

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Definitions:

International Finance

International finance is the study of monetary interactions that occur between two or more countries, focusing on areas such as foreign exchange markets, international monetary systems, and cross-border investment flows.

Net Exports

The value of a country's total exports minus its total imports, representing the balance of trade.

Trade Surplus

A situation where a country's exports exceed its imports, indicating that it is selling more goods and services to other countries than it is buying.

U.S. Exports

Goods, services, and capital sent from the United States to other countries, contributing to the country's economy.