Problem 2 (6 marks) (11 minutes)

During 20x4, an entity exchanged a hotel in exchange for an office building. Data on the hotel is as follows:

Original cost	$6,700,000
Accumulated depreciation	3,800,000
Fair value	3,500,000

The fair value of the office building is $3,400,000.

1. Assuming that the entity is a publicly accountable entity, prepare the journal entry to record the asset exchange.

2. What would be the sole difference in the accounting treatment of the exchange if the entity was a private company subject to ASPE?