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Glen Inc. and Armstrong Co. have an exchange that lacks commercial substance. The asset given...

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Accounting

Glen Inc. and Armstrong Co. have an exchange that lacks commercial substance. The asset given up by Glen Inc. has a book value of $12,000 and a fair market value of $15,000. The asset given up by Armstrong Co. has a book value of $20,000 and a fair market value of $19,000. Boot (cash) of $4,000 is received by Armstrong Co.

a. Prepare the journal entry to record this transaction by Glen Inc.

b. Prepare the journal entry to record this transaction by Armstrong.

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