Two independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol $

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3, 000

to complete the exchange. The following information for the two warehouses is available:

Denver

Bristol

Cost $

100, 000

58, 000

Accumulated depreciation

50, 000 20, 000

Fair value

45, 000 48, 000

Required:

Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Posted Date: Apr 15, 2024 07:42 AM

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Two independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol $

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Intermediate Accounting

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