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Presume That an Asset Exchange Transaction Does Not Culminate an Earning

Question 150

Multiple Choice

Presume that an asset exchange transaction does not culminate an earning process and that the transaction does not involve cash.In such a case


A) a gain will be recognized only when the fair value of the acquired assets exceeds the book value of the relinquished assets.
B) a loss will be recognized only when the fair value of the acquired assets exceeds the book value of the relinquished assets.
C) the assets acquired are recorded at the book value of the assets relinquished.
D) a gain will be recognized only when the fair value of the acquired assets exceeds the fair value of the relinquished assets.

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