Accounting for nonmonetary exchange

Question 1

Lack commercial substances

Answer 1

1. Gains
   - No Boot is recvd (no gain)
   - Boot is paid (no gain)
   - Boot is recvd ( recognize proportional

Question 2

Purchasing power G/L - Monetary asset vs. Monetary Liab

Answer 2

Deflation; Purchasing power G/Holding Monetary asset
Purchasing power L/Holding Monetary Liab

Inflation; purchasing power G/Holding Monetary liab
Purchasing power L/Holding Monetary asset

Question 3

Inflation and Appreciation Comparison

Answer 3

Monetary purchasing power G/L (Inflation)

Question 4

Exchanges having commercial substances JE

Answer 4

New asset (FV)
Cash recvd
Loss (if any)
    Old asset (Historical cost)
    Cash given
    Gain (if any)