[Anonymous]

Hi,

According to the ninja notes “The only gain that can be recognized is any boot (cash) received from the transaction”. However, in the wiley test bank, there is one question for which the correct answer says to use the proportion of cash received to the total consideration as the gain. Can someone clarify on the exact method to record the gain: Is it the cash actually received or a proportion based on the total FMV?

Thanks

[Anonymous]

Forgot to mention I was referring to transactions that lack commercial substance

[Anonymous]

Forgot to mention I was referring to transactions that lack commercial substance

[HeartsMimiCPA]

If boot received is <25% of all consideration received then you only recognize the boot in that percentage.( boot/total consideration) * boot

If boot received is > 25% then you this is considered a monetary transaction by both parties and gains/losses are recognized in entirety by both parties

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[HeartsMimiCPA]

If boot received is <25% of all consideration received then you only recognize the boot in that percentage.( boot/total consideration) * boot

If boot received is > 25% then you this is considered a monetary transaction by both parties and gains/losses are recognized in entirety by both parties

AUD - 65, 89!
REG - 70, 89!
FAR - 78!
BEC - 77!

Finally!
Experience 06/30/15
Ethics-Done

VA Licensed 09/15/15

[pia ach]

@cpa066729 Sorry this is OT, but can you please tell me which chapter are the non monetary exchanges fall under in WTB? i am trying to figure out where the mcqs are for installment sales, long term construction contracts and non monetary in WTB.

Thanks!

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[pia ach]

@cpa066729 Sorry this is OT, but can you please tell me which chapter are the non monetary exchanges fall under in WTB? i am trying to figure out where the mcqs are for installment sales, long term construction contracts and non monetary in WTB.

Thanks!

Finally done!!! Experience-pending. Ethics- Pending.
Reg 78 / 73/82.
Aud 74/89.
BEC 72 /78.
FAR 74/ 73/ 82.

[Anonymous]

thanks @heartsmimicpa

@pia ach, im not exactly sure under which category they fall under, i usually just select all topics and do a 20 question practice session. you could try checking off the category of monetary assets/liabilities or fixed assest to see if there are any questions for nonmonetary exchanges

[Anonymous]

thanks @heartsmimicpa

@pia ach, im not exactly sure under which category they fall under, i usually just select all topics and do a 20 question practice session. you could try checking off the category of monetary assets/liabilities or fixed assest to see if there are any questions for nonmonetary exchanges

[Author]

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