Reliable and Affordable
Question
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
Denver
Bristol
Required:
|
|
Denver |
Bristol |
|
Cost |
$100,000 |
$56,500 |
|
Accumulated depreciation |
50,000 |
23,000 |
|
Fair value |
44,500 |
44,500 |
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