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ololo11 [35]
3 years ago
14

Waterway Inc. and Carla Vista Co. have an exchange with no commercial substance. The asset oiven up by Waterway Inc. has a book

value of $35500 and a fair valiue of 90500. e asset given up by Carla Vista Co. has a book value of $120500 and a fair value of $105500. Boot of $25500 is recelved by Carla Vista Co What amount should Waterway Inc. record for the asset received?
A. $ 90500
B. $105500
C. $120500
D. $81000
Business
1 answer:
Murrr4er [49]3 years ago
8 0

Answer:

B. $105500

Explanation:

Calculation for What amount should Waterway Inc. record for the asset received

Asset received=$90,500+($120,500-$105,500)

Asset received=$90,500+$15,000

Asset received=$105,500

Therefore the amount that Waterway Inc. should record for the asset received is $105,500

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