[James]

Okay so in my studying I cannot seem to figure this out. For questions with no commercial substance you need to know cash/”total consideration”.

Can someone explain to me “total consideration”? Is it total consideration given or total consideration received? (ie: cash paid + fv of asset given up, or cash received + fv of asset received)

I see really mixed things in my google search and I’d like to set the record straight because my exam is monday.

[lam2848]

Hi! So I just studied this and to my understanding the total consideration is the cash paid (or received) plus the FMV of the asset received (not the FMV of the asset given). So you're on the right track!

FAR - 78

AUD - 75

BEC - 83

REG - 82

[James]

@lam2848 Thank you for the clarification!! Good luck in your studies 🙂

[Accounting Adam]

I don't want to over complicate – but notice the distinction between a transaction with ‘commercial substance' and a transaction without C.S.

Also, make sure to remember if no boot/loot is received the total consideration doesn't matter.

AUD - 87
BEC - 79
FAR - 76
REG - 75

Good Luck!

[Author]

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