Ronald Exchanged Similar Assets with Silver Company in a Transaction

question 79

Multiple Choice

Ronald exchanged similar assets with Silver Company in a transaction without commercial substance. Ronald gave up equipment that had a net book value of $47,000 (fair value $49,000) and Silver exchanged equipment with a net book value of $36,000 (fair value $35,000) . What is the correct value at which Ronald should record the new equipment?

• A)$35,000
• B)$36,000
• C)$47,000
• D)$49,000