Account Title and Options:

Accumulated depreciation Machinery (A)

Machinery (A)

Gain on Disposal of Machinery

Accumulated depreciation Machinery (B)

Machinery (B)

Cash

On August 1, Monty, Inc. exchanged productive assets with Flounder, Inc. Monty's asset is referred when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) to below as Asset A," and Flounder is referred to as "Asset B. The following facts pertain to these assets. Account Titles and Explanation Debit Credit Asset A Asset B Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash pald by Monty, Inc. Cash recelved by Flounder, Inc. $122,880 $140,800 51,200 60,160 76,800 96,000 19,200 19,200 Assuming that the exchange of Assets A and B has commerclal substance, record the exchange for both Monty, Inc. and Flounder, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatlcally Indented when amount is entered. Do not Indent manually. If no entry Is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Monty, Inc. and Flounder, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to o decimal places e.g. 58,971. Credit account titles are automatically indented