Record for the asset received

Reference no: EM13130299

Glen Inc. and Armstrong Co. have an exchange with no commercial substance. The asset given up by Glen Inc. has a book value of $12,000 and a fair market value of $15,000. The asset given up by Armstrong Co. has a book value of $20,000 and a fair market value of $19,000. Boot of $4,000 is received by Armstrong Co.

1) What amount should Glen Inc. record for the asset received?

a. $15,000

b. $16,000

c. $19,000

d. $20,000

2) What amount should Armstrong Co. record for the asset received?

a. $15,000

b. $16,000

c. $19,000

d. $20,000

Reference no: EM13130299

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