Asset A, Owned by LC, Had a Book Value of $8,000

Asset A, owned by LC, had a book value of $8,000 at 12/31/2011. At that time, LC exchanged Asset A and $50,000 cash with AE for B The market value of Asset A and the asking price of Asset B were $13,000 and $77,000, respectively, at 12/31/11. Assuming that these assets were dissimilar in nature, at what amount should Asset B be recorded by LC?Asset

A) $50,000
B) $58,000
C) $63,000
D) $77,000

Correct Answer:

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