Use the following information for questions
Two independent companies, Mintz Co.and Pine Co., are in the home building business.Each owns a tract of land held for development, but each would prefer to build on the other's land.They agree to exchange their land.An appraiser was hired, and from her report and the companies' records, the following information was obtained: $$\begin{array} { l r r }
& \text { Mintz's Land } & \text { Pine's Land } \\hline
\text { Cost and book value } & \$ 192,000 & { \$ 120,000 }\
\text { Fair value based upon appraisal } & 240,000 & 210,000
\end{array}$$ The exchange was made, and based on the difference in appraised fair values, Pine paid $30,000 to Mintz.The exchange lacked commercial substance.
-The new land should be recorded on Pine's books at

Question

Use the following information for questions 
Two independent companies, Mintz Co.and Pine Co., are in the home building business.Each owns a tract of land held for development, but each would prefer to build on the other's land.They agree to exchange their land.An appraiser was hired, and from her report and the companies' records, the following information was obtained: $$\begin{array} { l r r } 
& \text { Mintz's Land } & \text { Pine's Land } \\hline
\text { Cost and book value } & \$ 192,000 &  { \$ 120,000 }\
\text { Fair value based upon appraisal } & 240,000 & 210,000
\end{array}$$ The exchange was made, and based on the difference in appraised fair values, Pine paid $30,000 to Mintz.The exchange lacked commercial substance.
-The new land should be recorded on Pine's books at

Quizplus · Accepted Answer

Since the exchange lacks commercial substance, Pine's new land should be recorded at the book value of the old land ($120,000) plus the cash paid ($30,000), totaling $150,000.

Use the Following Information for Questions Two Independent Companies

Use the Following Information for Questions
Two Independent Companies