Question
On March 1, 2018, GHI Company exchanged productive assets with WXY, Inc. as follows: Asset A Owned by GHI Asset B Owned by WXY Historical
On March 1, 2018, GHI Company exchanged productive assets with WXY, Inc. as follows:
| Asset A Owned by GHI | Asset B Owned by WXY |
Historical Cost | 96,000 | 110,000 |
Accumulated Depreciation (a) | 40,000 | 47,000 |
Fair value at date of exchange | 60,000 | 75,000 |
Cash paid by GHI | 15,000 |
|
Cash paid by WXY |
| 15,000 |
(a) recognized to the date of the exchange |
Assume that the exchange has commercial substance.
A. Using the attached T-account template, prepare the entry to recognize the exchange in the general ledger of GHI Company.
B. Using the attached T-account template, prepare the entry to recognize the exchange in the general ledger of WXY, Inc.
Assume the exchange lacks commercial substance.
C. Using the attached T-account template, prepare the entry to recognize the exchange in the general ledger of GHI Company.
D. Using the attached T-account template, prepare the entry to recognize the exchange in the general ledger of WXY, Inc.
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