On August 1, 2007, Alpha Company exchanged productive assets with Beta Company. The following facts pertain to these assets as of August 1, 2007:
Alpha Company
Original Cost $96,000
Accumulated Depreciation $45,000
Fair Market Value $60,000
Cash Paid by Alpha $15,000
A) Assuming that the exchange has commercial substance, record the exchange in accordance with GAAP for Alpha Company.
B) Assuming that the exchange lacks commercial substance, record the exchange in accordance with GAAP for Alpha Company.