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question 38

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Use the following information for questions.
Glen Inc.and Armstrong Co.have an exchange with no commercial substance.The asset given up by Glen Inc.has a book value of $12,000 and a fair value of $15,000.The asset given up by Armstrong Co.has a book value of $20,000 and a fair value of $19,000.Boot of $4,000 is received by Armstrong Co.
-What amount should Glen Inc.record for the asset received?


Definitions:

Weighted Average

A mean calculated by giving values in a data set more influence according to some attribute of the data, such as frequency or importance.

Daily Receipts

The total amount of cash collected by a business within a single day.

Delay

The act of postponing or deferring an action or event, often resulting in the respective activity being carried out later than originally planned.

Cash Concentration Accounts

These are accounts used by companies to concentrate cash from multiple accounts into a single account for effective cash management.

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