Professional Documents
Culture Documents
f. Trade-in
i. More of an AFAR topic (if you see a problem like this on the prelims,
treat is as an exchange)
ii. Def: property is acquired by exchanging another property as part payment
and the balance payable in cash or any other form of payment in
accordance with agreed terms
iii. Involves a nondealer acquiring the asset from a dealer. It usually involves
a significant amount of cash
iv. order
1. FV of asset given up plus cash
2. T-in value of asset given up plus cash (aka the FV or the asset
received)