For a Nonmonetary Exchange of Plant Assets, Accounting Recognition Should

question 131

Multiple Choice

For a nonmonetary exchange of plant assets, accounting recognition should not be given to

• A) a loss when the exchange has no commercial substance.
• B) a gain when the exchange has commercial substance.
• C) part of a gain when the exchange has no commercial substance and cash is paid (cash paid/received is less than 25% of the fair value of the exchange).
• D) part of a gain when the exchange has no commercial substance and cash is received (cash paid or received is less than 25% of the fair value of the exchange).