Explore BrainMass
Share

What happens when one company purchases assets from another

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What happens when one company purchases assets from another company by trading assets or stock? How are the costs of the newly acquired assets booked? Could this create a gain?

© BrainMass Inc. brainmass.com December 20, 2018, 7:40 am ad1c9bdddf
https://brainmass.com/business/working-capital-management/what-happens-when-one-company-purchases-assets-from-another-416979

Solution Preview

What happens when one company purchases assets from another company by trading assets or stock? How are the costs of the newly acquired assets booked? Could this create a gain?

There can definitely be a gain. In fact, it would be typical that there is a gain, which would show that the business is worth more than what's being paid. It would be less common for the purchasing company to either have a loss from the purchase, or have a situation where there is no loss, ...

Solution Summary

What happens when one company purchases assets from another company by trading assets or stock? How are the costs of the newly acquired assets booked? Could this create a gain?

$2.19