Two independent companies, Denver and Bristol, each own a warehouse and they agree to an exchange in which no cashed changes hands.

Structions Chart of Accounts General Journal Ne Instructions Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available Cost Accumulated depreciation Denver 590,000 51,000 33,000 Bristol $48,000 23,000 33,000 Fair value Required: 1. Assuming the exchange has commercial substance, prepare foumal 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