8. Rus exchanged a number of used trucks plus cash for semi-truck. The used trucks have a combined book value of $42,000 (Cost $64,000). Rus purchasing agent who is experienced in the second hand truck market, determined the used trucks have a FMV of $49,000. Also in addition to providing the trucks. Rus most also pay $11,000 cash for the semi truck
if the exchange has no commercial substance then what is the incremental impact on net income as compared to one that has a commercial substance?
(example: if the 1st exchange had interest expense of $500 with commercial substance but in this one the is no commercial substance and there was $0 of interest expense, your answer would be $500 because net income would be $500 higher without an interest expense charge)
Thank you
brenda
7. Rus exchanged a number of used trucks plus cash for semi-truck. The used trucks have a combined book value of $42,000 (Cost $64,000). Rus purchasing agent who is experienced in the second hand truck market, determined the used trucks have a FMV of $49,000. Also in addition to providing the trucks. Rus most also pay $11,000 cash for the semi truck
if the exchange has commercial substance then what is the basis of the semi-truck for Rus?
Thank you
brenda
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more
Recent Comments