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On August 1, Marigold, Inc. exchanged productive assets with Swifty, Inc. Marigold's asset is referred to below as "Asset A and Swifty is referred to as "Asset B. The following facts pertain to these assets. Original cost Asset A $103,680 Asset B $118,800

On August 1, Marigold, Inc. exchanged productive assets with Swifty, Inc. Marigold's asset is referred to below as "Asset A and Swifty is referred to as "Asset B. The following facts pertain to these assets. Original cost Asset A $103,680 Asset B $118,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Marigold, Inc. and Swifty, Inc. in accordance with generally accepted accounting principles. (Do not round intermediate calculations. Round final answer to 0 decimal places eg. 58,971. 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 O for the amounts) Account Titles and Explanation Marigold. Inc's Books Swifty, Inc.'s Books Debit 1000 Credit
Transcribed Image Text:Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Marigold, Inc. and Swifty, Inc. in accordance with generally accepted accounting principles. (Do not round intermediate calculations. Round final answer to 0 decimal places eg. 58,971. 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 O for the amounts) Account Titles and Explanation Marigold. Inc's Books Swifty, Inc.'s Books Debit 1000 Credit
On August 1, Marigold, Inc. exchanged productive assets with Swifty, Inc. Marigold's asset is referred to below as "Asset A and Swifty is referred to as "Asset B. The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Marigold, Inc. Cash received by Swifty, Inc. (a) Asset A $103,680 43,200 64,800 16,200 Asset B $118,800 50,760 81,000 16,200
Transcribed Image Text:On August 1, Marigold, Inc. exchanged productive assets with Swifty, Inc. Marigold's asset is referred to below as "Asset A and Swifty is referred to as "Asset B. The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Marigold, Inc. Cash received by Swifty, Inc. (a) Asset A $103,680 43,200 64,800 16,200 Asset B $118,800 50,760 81,000 16,200
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