Expo Corp. exchanged Building 41, which has an appraised value
of $1,700,000, a cost of $2,800,000, and accumulated depreciation
of $1,300,000, for Building X which belongs to Purell Ltd. Building
X has an appraised value of $1,620,000, a cost of $3,100,000, and
accumulated Depreciation of $1,750,000. Purell paid Expo the
difference between the appraised values of the two buildings.
Assume depreciation has been updated to the date of exchange.
Required
1. Prepare the entries on both companies’ books, assuming the
buildings are similar assets.