Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange...

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:

	Denver	Bristol
Cost	$90,000	$45,000
Accumulated depreciation	55,000	25,000
Fair value	30,000	30,000

Required:

1.	Assuming the exchange has commercial substance, prepare journal entries for both Denver and Bristol to record the exchange.
2.	Assuming the exchange does not have commercial substance, prepare journal entries for both Denver and Bristol to record the exchange.

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ekkarill92 answered 9 months ago

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