Record the exchange for both monty inc and flounder inc

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Question - On August 1, Monty, Inc. exchanged productive assets with Flounder, Inc. Monty's asset is referred to below as "Asset A," and Flounder' 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 Monty, Inc.

19,200


Cash received by Flounder, Inc.


19,200

Required - Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Monty, Inc. and Flounder, Inc. in accordance with generally accepted accounting principles.

Reference no: EM133185456

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