Asset a Is Owned by TC and Has a Book

question 203

Multiple Choice

Asset A is owned by TC and has a book value at 12/31/2012 of $9,000. TC exchanged Asset A and $60,000 cash with CE for Asset B At 12/31/2013, the market value of Asset A is $20,000 and the list price of Asset B is $90,000. Assuming that these assets are dissimilar in nature, at what amount should Asset B be recorded by TC?

• A) $69,000
• B) $70,000
• C) $80,000
• D) $90,000

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Definitions:

High School

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A major telecommunications company that was implicated in a massive accounting scandal in the early 2000s, leading to its bankruptcy and substantial financial market repercussions.