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What happens when one company purchases assets from another

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?

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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, ...

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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?

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