Reference no: EM132685926

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

                                                                                          Asset A.          Asset B

Original cost                                                         $132,480         $151,800
Accumulated depreciation (to date of exchange)           55,200            64,860
Fair value at date of exchange                                  82,800             103,500
Cash paid by Flounder, Inc.                                        20,700
Cash received by Culver, Inc.                                                             20,700

Problem 1: Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Flounder, Inc. and Culver, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 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 0 for the amounts.)