CPA · Question 20 · Area II: Balance Sheet Accounts
Company A exchanges a delivery truck for a piece of land owned by Company B. The exchange lacks commercial substance. <br/><br/>Company A Truck:<br/>- Book Value: $20,000 (Cost $50k, Acc Dep $30k)<br/>- Fair Value: $25,000<br/><br/>Company A pays $2,000 cash to Company B to equalize the deal.<br/><br/>What is Company A's recorded cost of the land?
Answer options:
$22,000
$27,000
$20,000
$25,000
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