Asset Exchanges
Accounting Issues:
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
1.
At what value should the asset received be
recorded?
2.
Should a gain or loss be recognized on the
exchange of the assets?
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #1
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Adams Mining Co. traded a rare, 1913 antique truck (specially
equipped for mining during that era), for an patent with Gemstone
Industries. Adams had $150,000 invested in the truck, with
accumulated depreciation of $90,000. Gemstone had $20,000 in
capitalized costs for the patent, along with $2,000 in amortization.
Neither Adams nor Gemstone were able to reasonably determine
the FMV of either of these two items.
Required:
Record the transaction for both Adams and Gemstone.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #1
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Adams:
Truck:
$ 150,000
Acc. Dep:
(90,000)
BV:
$ 60,000
Adams:
Patent
Accumulated Depreciation
Old Equipment
Gemstone:
Investment--antiques
Patent
Gemstone:
Patent:
$ 20,000
Amort:
(2,000)
BV:
$ 18,000
Debit
Credit
60,000
90,000
150,000
18,000
18,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
FMV
of either asset
determinable?
No
Record asset
received at BV of
asset given-up
1
Yes
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #2
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Bain Media Services traded a printing press for a parcel of land
held by Pitt Development. The land was appraised at $150,000.
Pitt had the land recorded at $90,000 on their books. Bain paid
$240,000 for the press 5-years ago, and has accumulated
depreciation in the amount of $80,000.
Required:
Record the transaction for both Bain and Pitt.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
General Procedures
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
1.
2.
3.
4.
Remove old asset from books
Record new asset at FMV
Record any cash paid or received
Record any gain or loss
Accumulated Depreciation
New Aset (at FMV)
Cash
Loss on Exchange
Old Asset
Cash
Gain on Exchange
Debit
1
2
3
4
Credit
1
3
4
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Determining Gain or Loss
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
What you Get
Less: What you Give Up
Gain/(Loss)
$aaa
(bbb)
$ccc
Example:
You trade a car with a BV of $15,000 for
another car with a FMV of $25,000.
FMV of Assets Received:
Less: BV of Old Assets:
Realized Gain:
$
25,000
(15,000)
$ 10,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #2
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Bain:
Press:
$ 240,000
Acc. Dep:
(80,000)
BV:
$ 160,000
FMV:
?
Bain:
Land
Accumulated Depreciation
Loss on Exchange of Assets
Equipment
Pitt:
Equipment
Land
Gain on Exchange of Assets
Pitt:
Land:
Acc. Dep:
BV:
FMV:
Debit
$ 90,000
$ 90,000
150,000
Credit
150,000
80,000
10,000
240,000
150,000
90,000
60,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
FMV
of either asset
determinable?
No
Record asset
received at BV of
asset given-up
1
Yes
Assets
similar in
nature?
No
Record transaction
using General
Procedure.
2
Yes
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #3
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Stone Transportation arranged to trade a delivery pickup for a
newer custom pickup with ABC Tire Company. The CEO of
Stone Transportation plans to use the pickup for personal use (as a
company perquisite). Stone paid $25,000 for their pickup 3-years
ago, and has accumulated depreciation in the amount of $8,000.
Stone paid ABC an additional $5,000 for the newer pickup. The
Newer pickup had a bluebook value of $29,000.
Required:
Record the transaction for Stone transportation.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #3
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Stone:
Truck:
$ 25,000
Acc. Dep:
(8,000)
BV:
$ 17,000
FMV:
29,000
Stone:
Automobiles
Accumulated Depreciation
Cash
Automobiles
Gain on Exchange of Assets
Debit
Credit
29,000
8,000
5,000
25,000
7,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
FMV
of either asset
determinable?
No
Record asset
received at BV of
asset given-up
1
Yes
Assets
similar in
nature?
No
Record transaction
using General
Procedure.
2
Record transaction
using General
Procedure.
3
Yes
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Asset
given-up
normally held
for sale?
No
Are both
assets Productive
assets?
No
1
Yes
Yes
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #4
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim is an outdoor store—primarily clothing. Trader Jim
arranged to swap some of its outdoor clothing inventory for some
uniforms with Scott’s Uniform Supply Company. The uniforms
will be issued to employees as standard company attire. The
clothing inventory exchanged cost $1,800, has a replacement
value of $2,500 and could have been sold for $3,000. Scott’s
Uniforms intended to use the outdoor clothing in another line of
business. Scott’s cost for the uniforms was $2,000.
Required:
Record the transaction for Trader Jim and Scott’s Uniforms.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #4
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim:
Inventory:
FMV:
1,800
2,500
Trader Jim:
Uniforms
Inventory
Gain on Exchange of Assets
Scott's Uniforms
Inventory (Clothes)
Inventory (uniforms)
Gain on Exchange of Assets
Scott's Uniforms
Inventory: $ 2,000
Debit
Credit
2,500
1,800
700
2,500
2,000
500
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
FMV
of either asset
determinable?
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
No
Record asset
received at BV of
asset given-up
1
Yes
Assets
similar in
nature?
Flowchart
1 2 3 4 5 6 7 8
No
Record transaction
using General
Procedure.
2
Record transaction
using General
Procedure.
3
Yes
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Asset
given-up
normally held
for sale?
No
Are both
assets Productive
assets?
No
1
Yes
4
Record transaction
using General
Procedure.
No
Is asset
received to
be sold?
Yes
Yes
2
Return
2
The asset received must be held for
sale in the same line of business.
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #5
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Webber Electric sells industrial electrical components to local
industrial manufacturers. Webber arranged to exchange a gasoline
powered forklift for an electric-powered forklift with Jensen
Electric. Webber’s gas-powered forklift had a book value of
$13,000 (originally, Webber paid $25,000). Likewise, Jensen’s
forklift had a book value of $12,000 and accumulated depreciation
of $20,000. The electric-powered forklift has a FMV of $10,000.
Required:
Record the transaction for both Webber and Jensen.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #5
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Webber:
Gas Forklift
Acc. Dep:
BV:
FMV:
$ 25,000
(12,000)
$ 13,000
?
Webber:
Equipment
Accumulated Depreciation
Loss on Exchange of Assets
Equipment
Jensen:
Equipment
Accumulated Depreciation
Loss on Exchange of Assets
Equipment
Jensen:
Elect Forklift $ 32,000
Acc. Dep:
(20,000)
BV:
$ 12,000
FMV:
10,000
Debit
Credit
10,000
12,000
3,000
25,000
10,000
20,000
2,000
32,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Problems
1 2 3 4 5 6 7 8
FMV
of either asset
determinable?
Answers
1 2 3 4 5 6 7 8
No
Record asset
received at BV of
asset given-up
1
Yes
Assets
similar in
nature?
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
2
Yes
Asset
given-up
normally held
for sale?
No
Are both
assets Productive
assets?
No
Record transaction
using General
Procedure.
3
No
Record transaction
using General
Procedure.
5
1
Yes
4
Return
Record transaction
using General
Procedure.
No
Record transaction
using General
Procedure.
No
Is asset
received to
be sold?
Yes
Yes
Does
transaction
create a
gain?
2
Yes
2
The asset received must be held for
sale in the same line of business.
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #6
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Webber Electric sells industrial electrical components to local
industrial manufacturers. Webber arranged to exchange a gasoline
powered forklift for an electric-powered forklift with Jensen
Electric. Webber’s gas-powered forklift had a book value of
$9,000 (originally, Webber paid $25,000). Likewise, Jensen’s
forklift had a book value of $12,000 and accumulated depreciation
of $20,000. The electric-powered forklift has a FMV of $10,000.
Required:
Record the transaction for both Webber and Jensen.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #6
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Webber:
Gas Forklift
Acc. Dep:
BV:
FMV:
$ 25,000
(16,000)
$ 9,000
?
Webber:
Equipment
Accumulated Depreciation
Equipment
Jensen:
Equipment
Accumulated Depreciation
Loss on Exchange of Assets
Equipment
Jensen:
Elect Forklift $ 32,000
Acc. Dep:
(20,000)
BV:
$ 12,000
FMV:
10,000
Debit
Credit
9,000
16,000
25,000
10,000
20,000
2,000
32,000
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Problems
1 2 3 4 5 6 7 8
Assets
similar in
nature?
Answers
1 2 3 4 5 6 7 8
Record transaction
using General
Procedure.
No
2
Yes
Asset
given-up
normally held
for sale?
Flowchart
1 2 3 4 5 6 7 8
Are both
assets Productive
assets?
No
No
Record transaction
using General
Procedure.
3
No
Record transaction
using General
Procedure.
5
1
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Yes
4
Record transaction
using General
Procedure.
Is asset
received to
be sold?
No
Yes
Yes
Does
transaction
create a
gain?
2
Yes
6
Defer all gains
No
Is cash
received?
Return
Yes
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #7
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim is an outdoor store—primarily clothing. Trader Jim
arranged to swap some of its outdoor clothing inventory for
similar clothes with Scott’s Outdoor & More. The clothing
received by Trader Jim will be held for resale in the same line of
business. Trader Jim’s inventory cost $18,000, has a replacement
value of $25,000 and could have been sold for $30,000. Scott’s
inventory cost was $19,000. In addition, Scott had to pay an
additional $6,500 cash to complete the transaction.
Required:
Record the transactions for Trader Jim and Scott’s Outdoor &
More.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #7
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim:
Inventory:
FMV:
18,000
25,000
Trader Jim:
Cash
Inventory (new)
Inventory (old)
Gain on Exchange of Assets
Scott's Outdoor
Inventory (new)
Loss on Exchange of Assets
Inventory (old)
Cash
Scott's Outdoor
Inventory: $ 19,000
Cash paid:
6,500
Debit
Credit
6,500
18,500
18,000
7,000
25,000
500
6,500
 26%
25,000
Recognize all gain
Recognize all losses
19,000
6,500
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Asset
given-up
normally held
for sale?
Problems
1 2 3 4 5 6 7 8
No
Record transaction
using General
Procedure.
3
No
Record transaction
using General
Procedure.
5
Yes
Record transaction
using General
Procedure.
7
1
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Are both
assets Productive
assets?
No
Yes
Record transaction
4
using General
Procedure.
Is asset
received to
be sold?
No
Yes
Yes
Does
transaction
create a
gain?
2
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Yes
6
Defer all gains
No
Yes
No
Return
Is cash
received?
Is cash
³ 25% of total
transaction's
FMV?
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Sample Problem #8
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim is an outdoor store—primarily clothing. Trader Jim
arranged to swap some of its outdoor clothing inventory for
similar clothes with Scott’s Outdoor & More. The clothing
received by Trader Jim will be held for resale in the same line of
business. Trader Jim’s inventory cost $18,000, has a replacement
value of $25,000 and could have been sold for $30,000. Scott’s
inventory cost was $19,000. In addition, Scott had to pay an
additional $3,500 cash to complete the transaction.
Required:
Record the transactions for Trader Jim and Scott’s Outdoor &
More.
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Partial Answer to Problem #8
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim:
Inventory:
FMV:
18,000
25,000
Trader Jim:
Cash
Inventory (new)
Inventory (old)
Gain on Exchange of Assets
Scott's Outdoor
Inventory (new)
Inventory (old)
Cash
Scott's Outdoor
Inventory: $ 19,000
Cash paid:
3,500
Debit
Credit
3,500
?
3,500
 14%
25,000
18,000
?
Recognize
partial gain
19,000
3,500
Cash Paid,
Defer all gains
22,500
Return
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Calculating Partial Gains/New Basis
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Ste p 1: Calculate re alize d gain
FMV of assets received
- BV of assets given up
Realized gain
Ste p 2: Compute pe rce ntage of cash re ce ive d
Cash received
Total value of transaction
= % Cash
Ste p 3: Re cognize partial gain
(% cash) x (realized gain) = recognized gain
Ste p 4: De te rmine basis for ne w asse t
FMV of asset received
- Deferred gain 1
New basis
Return
1
Caution: Deferred gain is realized gain less recognized gain.
Note: The remaining gain is recognized over the life of the asset through lower depreciation.
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Answer to Problem #8
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Trader Jim:
Inventory:
FMV:
18,000
25,000
Scott's Outdoor
Inventory: $ 19,000
Cash paid:
3,500
Debit
Trader Jim:
Cash
Credit
3,500
1
Inventory (new)
Inventory (old)
Gain on Exchange of Assets
Scott's Outdoor
Inventory (new)
Inventory (old)
Cash
Trader Jim:
Realized Gain:
25,000 FMV received
(18,000) BV given up
7,000
% Cash Received:
15,480
18,000
980
3,500
= 14%
25,000
Recognized Gain:
14% x 7,000 = 980
22,500
19,000
3,500
Deferred Gain:
7,000 Realized
(980) Recognized
6,020
1
New Basis
Return
21,500 FMV Received
(6,020) Deferred Gain
15,480
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Asset
given-up
normally held
for sale?
Problems
1 2 3 4 5 6 7 8
No
Record transaction
using General
Procedure.
3
No
Record transaction
using General
Procedure.
5
Yes
Record transaction
using General
Procedure.
7
1
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Are both
assets Productive
assets?
No
Yes
Record transaction
4
using General
Procedure.
Is asset
received to
be sold?
No
Yes
Yes
Does
transaction
create a
gain?
2
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Yes
6
No
Is cash
received?
Yes
8
Return
Defer all gains
Defer a portion
of the gains
No
Is cash
³ 25% of total
transaction's
FMV?
Dr. Wallace R. Leese, Ph.D.
1
Problems
1 2 3 4 5 6 7 8
2
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
3
Conceptual
APB-29
4
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
5
6
Return
8
7
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
APB Opinion No. 29
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Return
Normal Procedure
•
FMV is recognized on reciprocal nonmonetary
transactions (gains/losses recognized)
Exceptions to Normal Procedure
Generally:
•
Transactions recorded at BV
•
Some monetary consideration allowed
Where exceptions are applicable:
1)
Held for sale products/property in exchange for
products/property to be sold in the same line of business.
2)
Productive assets for similar productive assets
(NOTE: Exchange cannot be made for the purpose of
facilitating a sale to a customer)
Dr. Wallace R. Leese, Ph.D.
Asset Exchanges
Definitions
Problems
1 2 3 4 5 6 7 8
Answers
1 2 3 4 5 6 7 8
Flowchart
1 2 3 4 5 6 7 8
Conceptual
APB-29
Definitions
General Procedure
Determine Gain/Loss
Compute Partial Gains
Comprehensive Flowchart
Monetary items: Cash, claims to cash, obligations to pay
cash, and other balance-sheet items that are fixed in
dollar amounts.
(Examples: Cash, A/R, A/P, Bonds)
Nonmonetary transactions: Exchanges that involve few
or no monetary items.
Similar Productive Assets: Assets that are of the same
general type, that perform the same function, or that are
employed in the same line of business.
Return
Dr. Wallace R. Leese, Ph.D.