Identify the value that should be used by waterway to record

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Question 1: Mr. Benson owns 70% of the shares of Oriole Ltd. His spouse, Mrs. Benson owns 65% of the shares of Waterway Corporation. Oriole sold a parcel of land to Waterway for $282,200. The land had a fair market value of $282,200 a carrying value on Oriole's books of $207,200. The sale of the land was considered to be outside the normal course of both businesses. Identify the value that should be used by both Oriole and by Waterway to record the sale and purchase of the land.

Reference no: EM132602013

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