I'm currently using Glem and Yaeger to study for FARE. I noticed that Gleim mentions that a nonmonetary exchange involving boot equal 25% or more of total consideration results in the exchange being monetary and gains and losses  being recongnized in full for both parties. I dont think I heard this detail mentioned in Yaeger lectures and couldnt not even find it the Wiley text. (according to them only receipt of boot triggers gain recognition in proportion of boot to total consideration). So my question is what is the final word on this situation? What position is the exam likely to take?

Thanks

Please refer this post:-

http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=22021&am p;PN=3

Gleim is following the correct approach!

In general my strategy is - when in doubt follow Gleim. I'm using Yaeger & Gleim. And in Gleim I trust to pass this FAR.

I do follow the 25% boot to recog Gain for nonmonetary exchanges.

I found this here: http://cpaclass.com/gaap/sfas/gaap-sfas-153.htm

Emerging Issues Task Force (EITF) 86-29 (February 1987)
        a.  If boot (cash payment) is significant
             --> It is a monetary transaction, not a nonmonetary exchange of assets

        b.  Boot (cash payment) is significant
             --> If boot (cash payment) is at least 25 percent of the fair value of the exchange.

        c.  If boot (cash payment) is less than 25 percent
             --> It is a nonmonetary exchange of assets

Me: EITF's fall under Category C of the GAAP heirarchy. I don't think the exam is going to test stuff from Category C. I think they only test stuff from Category A. I checked APB 29 and SFAS 153 and they don't mention the 25% boot rule.

As always, correct me if I'm wrong.