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Smith and Jones each owns tracts of land. Because of the location of their current operations, each would prefer to have the other's land. Smith and Jones agree to exchange tracts. Jones pays Smith $36,000 based upon the following data.

  • Smith Land Jones Land
  • Original Cost $270,000 $280,000
  • Appraised Fair Value $300,000 $264,000
  • at date of exchange.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M9974237

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