Question
Archibald Corporation, a public business exchanged an asset with Bass Industries. The following information was provided by both companies. Archibald Bass Original cost of the
Archibald Corporation, a public business exchanged an asset with Bass Industries.
The following information was provided by both companies.
| Archibald | Bass | |
| Original cost of the asset | $320,000 | $430,000 |
| Accumulated depreciation | 256,000 | 344,000 |
| Fair value of the interest | 80,000 | 120,000 |
Prepare the journal entries on the books of Archibald business assuming that the exchange would have commercial substance.
Prepare the journal entries on the books of Archibald business assuming that the exchange would have no commercial substance.
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
