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  1. business
  2. accounting
  3. a) commercial substance b) lack of commercial subs

A) commercial substance B) Lack of Commercial Substance - Gain Recognized: PLS HELP TY...

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Accounting

A) commercial substance
B) Lack of Commercial Substance
- Gain Recognized:
PLS HELP TY image
On August 1, Novak, Inc. exchanged productive assets with Splish, Inc. Novak's asset is referred to below as "Asset A" and Splis is referred to as "Asset B." The following facts pertain to these assets, Asset A Asset B $130,560 $149.600 54,400 63,920 Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Novak, Inc Cash received by Splish, Inc. 81,600 102.000 20,400 20,400 (a) Your answer is partially correct Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Novak, Inc. and Splish, Inc. in accordance with generally accepted accounting principles. (Round answers to O decimal places, eg, 5.275. 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 Ofor the amounts.)

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