On August 1, Flounder, Inc. exchanged productive assets with Culver, Inc. Flounders asset is referred to below as Asset A, and Culver is referred to as Asset B. The following facts pertain to these assets.

		Asset A		Asset B
Original cost		$103,680		$118,800
Accumulated depreciation (to date of exchange)		43,200		50,760
Fair value at date of exchange		64,800		81,000
Cash paid by Flounder, Inc.		16,200
Cash received by Culver, Inc.				16,200

(a)

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Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Flounder, Inc. and Culver, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Flounder, Inc.s Books
Culver, Inc.s Books

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(b)

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Flounder, Inc. and Culver, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Flounder, Inc.s Books
Culver, Inc.s Books