During the year an entity exchanged an office building for a hotel with another entity....
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Accounting
During the year an entity exchanged an office building for a hotel with another entity. Data on outgoing asset is as follows:
Original cost $3,200,000
Accumulated depreciation $1,760,000
Fair Value $5,300,000
The fair value of the incoming asset is $5,400,000
Required:
- Assuming that the entity is a publicly accountable entity and there is commercial substance, prepare the journal entry to record the asset exchange.
- What would be the sole difference in the accounting treatment of the exchange if the entity was a private company subject to ASPE?
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