Question

On August 1, Ivanhoe, Inc. exchanged productive assets with Shamrock, Inc. Ivanhoe’s asset is referred to below as “Asset A,” and Shamrock’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $111,360 $127,600 Accumulated depreciation (to date of exchange) 46,400 54,520 Fair value at date of exchange 69,600 87,000 Cash paid by Ivanhoe, Inc. 17,400 Cash received by Shamrock, Inc. 17,400

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Ivanhoe, Inc. and Shamrock, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Ivanhoe, Inc.’s Books     Cash    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)         Machinery (A)    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Machinery (B)         Cash    Accumulated Depreciation-Machinery (B)    Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)    Gain on Disposal of Machinery         Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Machinery (B)    Machinery (A)    Gain on Disposal of Machinery         Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Accumulated Depreciation-Machinery (B)     Shamrock, Inc.’s Books     Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Machinery (B)    Machinery (A)         Machinery (A)    Cash    Accumulated Depreciation-Machinery (A)    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    Machinery (B)         Machinery (A)    Cash    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Gain on Disposal of Machinery    Machinery (B)         Machinery (A)    Machinery (B)    Cash    Accumulated Depreciation-Machinery (A)    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery         Accumulated Depreciation-Machinery (A)    Machinery (B)    Machinery (A)    Cash    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Ivanhoe, Inc. and Shamrock, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Ivanhoe, Inc.’s Books Shamrock, Inc.’s Books

Answer 1