ABC IncEngages in a Non-Cash Exchange with a Third Party Whereby

question 86

Multiple Choice

ABC Inc.engages in a non-cash exchange with a third party whereby ABC Inc.issues common shares to the third party in exchange for some highly specialized Machinery & Equipment.The value of the shares issued was $15,000 while the appraised value of the Machinery & Equipment was $12,000.At what amount would this transaction be valued on ABC's books?

• A) $12,000 under IFRS and $15,000 under ASPE.
• B) $15,000 under IFRS and $12,000 under ASPE.
• C) $12,000 under either ASPE or IFRS.
• D) $15,000 under either ASPE or IFRS.

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Definitions:

Muscular Strength

The maximum amount of force a muscle or muscle group can exert in a single effort.

Running

A form of aerobic exercise that involves rapid foot movement to propel the body forward in a steady, rhythmic motion.

Exercise Shoes

Footwear designed specifically to provide support, stability, and comfort during physical activity, reducing the risk of injury.

Simulating

Imitating or replicating certain conditions or stimuli for the purpose of study, training, or experimentation.