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20. Colt Football Co. had a player contract with Watts that is recorded in its books at $3,600,000 on July 1, 2010. Day Football Co. had a player contract with Kurtz that is recorded in its books at $

20. Colt Football Co. had a player contract with Watts that is recorded in its books at $3,600,000 on July 1, 2010. Day Football Co. had a player contract with Kurtz that is recorded in its books at $

20. Colt Football Co. had a player contract with Watts that is recorded in its books at
$3,600,000 on July 1, 2010. Day Football Co. had a player contract with Kurtz
that is recorded in its books at $4,500,000 on July 1, 2010. On this date, Colt
traded Watts to Day for Kurtz and paid a cash difference of $450,000. The fair
value of the Kurtz contract was $5,400,000 on the exchange date. The exchange
had no commercial substance. After the exchange, the Kurtz contract should be
recorded in Colt's books at
a. $4,050,000.
b. $4,500,000.
c. $4,950,000.
d. $5,400,000.

 
manish jayant 07-Sep-2020

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