Nhen plant assets are exchanged the gain or loss on the exch

Nhen plant assets are exchanged, the gain or loss on the exchange equals: O A. the fair value of the asset given up plus the cash paid. B, the difference between the fair value and the book value of the asset received C. the fair value of the asset received plus the cash paid. O D. the difference between the fair value and the book value of the asset given up.

Solution

When plant assets are exchanges the gain or loss on the exchange equals the difference between the fair value and book value of assets given up.

SO answer is d)  the difference between the fair value and book value of assets given up.