[FuturePAcpa]

Hi Guys,

In the becker book, page F2-39 there is an example of a nonmonetary exchange where boot is paid… and you don’t recognize the gain. I understand the theory, but they give the example and then a journal entry. The entry is as follows:

DR Machine B 10,000

CR Machine A 10,000

CR Cash 2,500

This entry is not equal. What am I missing here? Is this a typo??

**Whole question:

Assume:

-Machine A and $2,500 is exchanged for Machine B

-Machine A, carrying value = $10,000

-Machine A, fair value = $12,000

-Machine B, fair value = $14,500

BEC - 7/25/11 (74)
FAR - 10/10/11

[Anonymous]

In your scenario, my Wiley book said the entry should be:

Dr. Machine B 12,500 (BV given + Boot given)

Cr. Cash 2,500

Cr. Machine A 10,000

It's probably a typo. I had a hard time understanding Becker's Non-Monetary Exchange section as well and I thought Wiley did a better job there.

[Yvonne570]

LOL, I opened my book to this section and do see a major issue. Something we should bring to Becker's attention. Quite odd.

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD

[shutterbug]

Becker is aware of this typo, I always update/correct the textbook before I start each section. Pain in the butt. Here's the link for the Financial Course Updates:

https://beckerkb.custhelp.com/app/answers/detail/a_id/363/related/1

FAR 73 78
BEC 73 82
AUD 65 83

[FuturePAcpa]

Thanks!! I figured it was a typo just wasn't sure. And shutterbug thanks for the website!

BEC - 7/25/11 (74)
FAR - 10/10/11

[Author]

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