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When the fair value is determinable, a nonreciprocal transfer of a nonmonetary asset to another entity should be recorded at the
Fair value of the asset received, but no gain or loss should be recognized on the disposition of the asset.
Fair value of the asset transferred, and a gain or loss should be recognized on the disposition of the asset.
Recorded amount of the asset transferred.
Recorded amount of the asset received.It sound to me like you are giving an asset away and getting nothing in return, correct?
So what happens if I buy a piece of land for $100,000 and the book value grows to $150,000? When I transfer that land out of my company into an unrelated entity, what is the credit I put in on my land account? 100K or 150K?
Wiley suggests we treat it like a cash sale for FMV, but that makes no sense to me because we’d have no bucket to store the gain in.
AUD - 93
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Corporate finance leaderBEC - 87 | 02/28
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AUD - XX | 09/10
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