Harrison Company owns a manufacturing plant with a fair value of $3,500,000,a recorded cost of $6,200,000,and accumulated depreciation of $2,400,000.Pablo Company owns a warehouse with a fair value of $3,000,000,a recorded cost of $5,500,000,and accumulated depreciation of $2,800,000.Harrison and Pablo exchange assets with Harrison also receiving cash of $500,000 from Pablo.The exchange is considered to have commercial substance.
Required:
Record the exchange on the books of:
1.Harrison.
2.Pablo.

Question

Quizplus · Accepted Answer

The Answer of Harrison Company owns a manufacturing plant with a fair value of $3,500,000,a recorded cost of $6,200,000,and accumulated depreciation of $2,400,000.Pablo Company owns a warehouse with a fair value of $3,000,000,a recorded cost of $5,500,000,and accumulated depreciation of $2,800,000.Harrison and Pablo exchange assets with Harrison also receiving cash of $500,000 from Pablo.The exchange is considered to have commercial substance.
Required:
Record the exchange on the books of:
1.Harrison.
2.Pablo.

Harrison Company Owns a Manufacturing Plant with a Fair Value