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How should Marvin Corporation and Valerie Corporation record these transactions?

How should Marvin Corporation and Valerie Corporation record these transactions?

Instructions:

Write your initial thoughts regarding the following case and project. Then write up 5-7 sentences (good paragraph) with a reference to the case as found in this material as provided.

Case 2

On March 1, year 1, Marvin Corporation promises to unconditionally transfer a building that cost $125,000 with an appraised value of $175,000 to Valerie Corporation on March 1, year 2 for a vehicle that was recently purchased for $140,000. As of December 31, year 2, Marvin Corporation has not transferred title to the building. Marvin Corporation received the vehicle. How should Marvin Corporation and Valerie Corporation record these transactions?

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