Basile Corporation (Basile) manufactures and sells pre-made custom doors and related accessories. Basile is a private corporation owned by two non-related individuals. In May 20X6, sold some of their products to Nattah Photography Inc. (Nattah) (which will be used to renovate the studio). Nattah specializes in commercial photography. It is considered a related party, as it is owned by a child of one of the owners of Basile. During 20X6, Basile sold $6,200 worth of products to Nattah. In exchange for the products, Nattah took new photos to be used by Basile in their online brochure. The doors have a retail price of $7,500. Based on the hours spent, Nattah’s services would normally cost between $7,000 and $10,500, depending on the individual contract in place.

Required:

1. Prepare an analysis for Basile assuming they account for the transaction in accordance with ASPE. Include a discussion of any critical judgements or additional information that would be useful to to complete your analysis. 

2. Prepare the journal entries assuming that the transaction is recorded:

1. At the exchange amount

2. At the carrying amount