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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:

  1. Assuming that the entity is a publicly accountable entity and there is commercial substance, prepare the journal entry to record the asset exchange.
  2. 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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