Two independent companies, Sam and Brad, each own a warehouse, and they agree to an exchange. Sam's

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Two independent companies, Sam and Brad, each own a warehouse, and they agree to an exchange.

Sam's warehouse has a cost of $ 95,000, accumulated depreciation of $ 50,000, and fair value of $ 38,000. Sam agrees to pay Brad $ 3,000 to complete the exchange.

Brad's warehouse has a cost of $ 50,000, accumulated depreciation of $ 20,000, and fair value of $ 40,000.

Assuming the exchange has commercial substance, provide the journal entries for Sam and Brad 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: Feb 14, 2023 12:53 PM

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Two independent companies, Sam and Brad, each own a warehouse, and they agree to an exchange. Sam's

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Sams Journal Entry Debit Warehouse to be Acquired 38000 Debit Loss on Exchan... View the full answer

Intermediate Accounting

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