ACC 304 All Assignments ACC 304 All Assignments | Page 154

51. For a nonmonetary exchange of plant assets, accounting
recognition should not be given to
a. a loss when the exchange has no commercial substance.
b. a gain when the exchange has commercial substance.
c. part of a gain when the exchange has no commercial substance and
cash is paid (cash paid/received is less than 25% of the fair value of the
exchange).
d. part of a gain when the exchange has no commercial substance and
cash is received (cash paid or received is less than 25% of the fair value
of the exchange).
52. When an enterprise is the recipient of a donated asset, the
account credited may be a
a. paid-in capital account.
b. revenue account.