ACC 304 All Assignments ACC 304 All Assignments | Page 150

b. a gain or loss is computed by comparing the fair value of the asset
received with the fair value of the asset given up.
c. only gains should be recognized.
d. only losses should be recognized.
S45. The cost of a nonmonetary asset acquired in exchange for
another nonmonetary asset and the exchange has commercial
substance is usually recorded at
a. the fair value of the asset given up, and a gain or loss is recognized.
b. the fair value of the asset given up, and a gain but not a loss may be
recognized.
c. the fair value of the asset received if it is equally reliable as the fair
value of the asset given up.
d. either the fair value of the asset given up or the asset received,
whichever one results in the largest gain (smallest loss) to the company.