Mathematics, 19.07.2019 00:30, nick5442
Two independent companies, denver and bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. the following information for the two warehouses is available:
denver bristol
cost $90,000 $45,000
accumulated depreciation 55,000 25,000
fair value 30,000 30,000
required:
1. assuming the exchange has commercial substance, prepare journal entries for denver and bristol to record the exchange.
2. assuming the exchange does not have commercial substance, prepare journal entries for denver and bristol to record the exchange.
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