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Calaveras Tire exchanged machinery for two pickup trucks. The book value and fair value of the machinery were $24,000 (original cost of $71,000 less accumulated depreciation of $47,000) and $19,000, respectively. To equalize fair values, Calaveras paid $5,000 in cash.
At what amount will Calaveras value the pickup trucks?Assume the exchange has commercial substance. How much gain or loss will the company recognize on the exchange?
compare the two companies about the ratios. does it seems high ratio- low receivicing day and reverse?2011deckskkratio
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