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P10-9 (Nonmonetary Exchanges) On August 1, Hyde, Inc. exchanged productive assets with Wig Inc. Hyde’s asset is referred to below as “Asset A,” and Wiggins’ is referred to as “Asset B.” The following facts pertain to these assets. A B Original cost  $96,000 $110,000 40000 47000 Fair value at date of exchange 60000 75000 Cash paid by Hyde, Inc 15000 Cash received by Wiggins, Inc. 15000 Instructions (a) Assuming that the exchange of Assets A and B has commercial substance, record the exchan both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles. (b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exch both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles. A) Hyde's Asset (Asset A) Asset B 100000 Accumulated Deprciation - Asset A 40000 Asset A 96000 Gain On Disposal
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