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Question - On August 1, Culver, Inc. exchanged productive assets with Larkspur, Inc. Culver's asset is referred to below as "Asset A," and Larkspur' is referred to as "Asset B." The following facts pertain to these assets.
Asset A
Asset B
Original cost
120,960
138,600
Accumulated depreciation (to date of exchange)
50,400
59,220
Fair value at date of exchange
75,600
94,500
Cash paid by Culver, Inc.
18,900
0
Cash received by Larkspur, Inc.
Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Culver, Inc. and Larkspur, Inc. in accordance with generally accepted accounting principles.
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