On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hydes asset is referred to below as Asset A, and Wiggins is referred to as Asset B. The following facts pertain to these assets. (refer to photo attached).

Problems: (part A) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.

(part B) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.

C D Original cost Accumulated depr (to date of exchange) Fair Value at date of exchange Cash paid by Grapes, Inc. Cash received by Wine, Inc. Asset A Asset B Grapes, Inc. Wine Inc $126,720 $145,200 52,800 62,040 79,200 99,000 19,800 n/a 19,800