For a nonmonetary exchange of plant assets, accounting recognition should not be

Question

For a nonmonetary exchange of plant assets, accounting recognition should not be given to

a gain when the exchange has commercial substance.

part of a gain when the exchange has no commercial substance and cash is received (cash paid or received is less than 25% of the fair value of the exchange).

a loss when the exchange has no commercial substance.

part of a gain when the exchange has no commercial substance and cash is paid (cash paid/received is less than 25% of the fair value of the exchange).

a gain when the exchange has commercial substance.

Explanation / Answer

part of a gain when the exchange has no commercial substance and cash is paid (cash paid/received is less than 25% of the fair value of the exchange).

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