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hi everybody so this video is talking about commercial versus non-commercial substance so we have two independent companies in periyar and polar and they each on a warehouse and they are willing to exchange with no cash involved their warehouses so we have the cost of and part barrier and parlor was 85,000 polar was forty thousand accumulated depreciation was 50 20 fair value has been assessed now one thing I want to do is I want to bring in the book value so the book value is the difference between your costs and your accumulated depreciation there should be nothing new from our financial accounting so what I need to do is I need to do the journal entries to exhume first to assume the exchange has commercial substance okay so weamp;#39;ll do the first one here this one has commercial substance okay so and we will do Poirier and then we will also do um polar okay so he is acquiring a new building and weamp;#39;re going to use the fair value so we are going to do a debit to building a
