Non Monetary Transaction – Boot

  • Creator
    Topic
  • March 24, 2015 at 3:55 pm #192898
    MrsBing
    Member

    In a non monetary transaction that lacks commerical substance and involves boot, if boot is paid and received are they netted against each other to get the total boot received or paid? Also, if a credit is received towards the new asset, would a credit be considered boot?

    Here’s my scenario:

    Old Asset FV = 150K

    Old Asset NBV = 50K

    New Tool FV = 125K

    Cash Paid = 75K

    Credit Received = 50K

    Becker, Wiley Test Bank, and Ninja 10 Point Combo!

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