Rene Exchanged Similar Assets with Simone Company in a Transaction

question 29

Multiple Choice

Rene exchanged similar assets with Simone Company in a transaction with commercial substance. Rene gave up equipment that had a net book value of $47,000 (fair value $49,000) and Simone exchanged equipment with a net book value of $36,000 (fair value $35,000) . What is the correct value at which Simone should record the new equipment?

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

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