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

		Asset A		Asset B
Original cost		$101,760		$116,600
Accumulated depreciation (to date of exchange)		42,400		49,820
Fair value at date of exchange		63,600		79,500
Cash paid by Monty, Inc.		15,900
Cash received by Flounder, Inc.				15,900

1. Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Monty, Inc. and Flounder, Inc. in accordance with generally accepted accounting principles

Monty, Inc.s Books and Flounder, Inc.s Books

2. 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.