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The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $30,000. According to an independent appraisal, the land currently is worth $72,000. Tinsley gave $14,000 in cash to complete the transaction.
Required:
1. What is the fair value of the new parcel of land received by Tinsley?
2. Prepare the journal entry to record the exchange assuming the exchange has commercial substance.
3. Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance.
Refer back to all of the assignments you have completed related to Reliable Pharmaceutical Supply. Read the following specifications and answer the questions in an eight to ten (8-10) page paper.
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