Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange

Question

lesya692 [45]

3 years ago

15

Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange

has commercial substance. At what amount should Amble record the truck received

Business

1 answer:

anygoal [31] · Answer 1 · 2022-05-05T16:29:54+03:00

Answer:

$20,000

Explanation:

Based on the information given about Amble Inc the amount that Amble should record the truck received should be $20,000 because the book value is the amount of $12,000.

Secondly since we were told that the exchange has commercial substance which means that the amount of $20,000 which is the fair value of the truck which the buyer is willing to buy from the seller should be the amount that Amble should record the truck received .

Therefore Amble should record the truck received at the amount of $20,000