Wildcat Baseball Company Had a Player Contract with Carter That

Short Answer

Wildcat Baseball Company had a player contract with Carter that was recorded in its accounting records at $5,800,000.Aggie Baseball Company had a player contract with Jeter that was recorded in its accounting records at $5,600,000.Wildcat traded Carter to Aggie for Jeter by exchanging each player's contract.The fair value of each contract was $6,000,000.What amount should be shown in the accounting records after the exchange of player contracts? $\begin{array}{lll}&\text { Wildcat } & \text { Aggie }\\\text { a. } & \$ 5,600,000 & \$ 5,600,000 \\\text { b. } & \$ 5,600,000 & \$ 5,800,000 \\\text { c. } & \$ 5,800,000 & \$ 5,600,000 \\\text { d. } & \$ 6,000,000 & \$ 6,000,000\end{array}$