When a long-term operating asset is exchanged for another long-term operating asset, and no cash is paid to the seller, there is no gain or loss for the buyer as a result of the exchange.

Question

Quizplus · Accepted Answer

When a long-term operating asset is exchanged for another, a gain or loss may be recognized if the fair value of the asset received differs from the carrying amount of the asset given up.

When a Long-Term Operating Asset Is Exchanged for Another Long-Term