PLEASE SOLVE FOR E10-10

ME HOW E10-9 Exchange of Assets Two independent companies, Denver and Bristol, each own a warehouse, and they agree to LO 10.3 an exchange in which no cash changes hands. The following information for the two warehouses is available: Denver Bristol Cost $90,000 $45,000 SHOW Accumulated depreciation 55,000 25,000 Fair value 30,000 30,000 Required: 1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange. 2. Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange. 3. Next Level What is the justification of accounting for the exchange differently when the exchange has commercial substance versus when it does not? 810-10 /Exchange of Assets Use the same information as in E10-9, except that the warehouse owned by Denver has a fair LO 10.3 value of $28,000, and therefore, Denver agrees to pay Bristol $2,000 to complete the exchange. Required: Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the SHOW exchange