Reference no: EM132251517
Question - In 2018, Vega Corporation and Sarkissian Company engaged in the following exchange of assets:
1) Vega gave up a small widget cutter with a cost of $40,000 and accumulated depreciation of $28,000 to acquire a deluxe widget cutter from Sarkissian Company. The deluxe widget cutter cost Sarkissian $100,000, has a book value of $25,000, and a fair value of $9,000. Vega also paid Sarkissian $2,000 cash.
2) Vega acquired a delivery truck from Sarkissian in exchange for a packaging machine. The machine cost $60,000, has a book value of $12,000, and a fair value of $18,000. The truck has a cost of $24,000 and a book value of $16,000 on Sarkissian's books. Sarkissian also paid Vega $1,000.
Required: Make the entries to record the two exchanges of assets. You may assume that both transactions have commercial substance.
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