Solution-Accordance with generally accepted accounting

Accordance with generally accepted accounting principles

Reference no: EM131794701

On August 1, Blossom, Inc. exchanged productive assets with Blue, Inc. Blossom's asset is referred to below as "Asset A," and Blue' is referred to as "Asset B." The following facts pertain to these assets.

Asset A	Asset B
Original cost	$122,880	$140,800
Accumulated depreciation (to date of exchange)	51,200	60,160
Fair value at date of exchange	76,800	96,000
Cash paid by Blossom, Inc.	19,200
Cash received by Blue, Inc.	19,200

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Blossom, Inc. and Blue, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Reference no: EM131794701

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Accordance with generally accepted accounting principles

Reference no: EM131794701

Reference no: EM131794701

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