Question
Two independent companies, Denver and Bristol, each own a warehouse , and they agree to exchange them. The following information for the two warehouses is
Two independent companies, Denver and Bristol, each own a warehouse , and they agree to exchange them.
The following information for the two warehouses is available:
| Denver | Bristol | |
| cost | 90,000 | 45,000 |
| accumulated depreciation | 55,000 | 25,000 |
| fair value | 33,000 | 30,000 |
Bristol agrees to pay Denver $ 3,000 to complete the exchange.
Required: Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan, Louis Beaubien
8th Canadian Edition
134453735, 9780134824680, 134824687, 9780134733081 , 978-0134453736
