Dinga Corp

question 49

Multiple Choice

Dinga Corp. exchanged similar pieces of equipment with Elongo Corp. No cash was exchanged. Since this exchange will not significantly change the economic position of either company, this transaction lacks commercial substance. At this time, the net book value of Dinga's asset is $ 36,000, while the net book value of Elongo's asset on their books is $ 33,300. However, it has been reliably determined that the fair value of Dinga's asset is $ 36,900, while the fair value of Elongo's asset is $ 34,200. Given these facts, at what amount should Dinga record the asset it receives from Elongo?

• A) $ 36,900
• B) $ 36,000
• C) $ 34,200
• D) $ 33,300

---

Definitions:

Formal Style

A mode of communication characterized by a structured, professional tone and use of proper grammar and vocabulary, often used in business, academic, or official contexts.

Third-person Pronouns

Pronouns used to refer to people or things other than the speaker or listener, such as "he," "she," "it," "they."

Poor Writers

Individuals who struggle with writing, often due to lack of practice, understanding, or skill in composing coherent text.

Writing Rules

Established guidelines or principles followed to achieve clarity, effectiveness, and correctness in written communication.