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What amount should be recognized for the licence under ASPE

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Question - On April 15, 2020, Rustic Inc. exchanged old equipment for cash and a new licence to produce a new product. The transaction has commercial substance. Information related to this transaction is provided below:

Old equipment:

Original cost - $150,000

Accumulated depreciation to date - $40,000

Fair market value - $125,000

Cash received - $30,000

Fair market value of the licence - $105,000

What amount should be recognized for the licence under ASPE?

Reference no: EM133092256

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