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 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?