Question
Two independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol $2,000 to complete the exchange. The following information for
Two independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol $2,000 to complete the exchange. The following information for the two warehouses is available:
| Denver | Bristol | |
| Cost | $90,000 | $47,000 |
| Accumulated depreciation | 50,000 | 20,000 |
| Fair value | 33,000 | 35,000 |
Required:
| Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange |
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Mylab Accounting With Pearson -- Access Card -- For Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th Edition
0134161645, 9780134161648
