Kim company exchanges assets with chero


Kim Company exchanges assets with Chero Company. Kim Company exchanges equipment with a book value of $25,000 and fair market value of $40,000 for Chero Company's land with a cost of $7,500 and fair market value of $38,000.Chero Company also paid Kim Company $2,000 in cash. Compute Kim Company's cost of the land acquired and any gain or loss on the exchange.

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Accounting Basics: Kim company exchanges assets with chero
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