Reference no: EM132732426

Questions -

Transaction 1. ABC Inc. traded a vehicle and paid $20,000 cash for a vehicle owned by XYZ Inc. The ABC's vehicle had an original cost of $280,000, accumulated depreciation of $160,000, and an estimated fair value of 180,000. ABC inc. estimated the fair value of XYZ's vehicle to be $200,000. The transaction had commercial substance.

Transaction 2. ABC Inc. exchanged equipment with DEF, Inc. ABC's equipment originally cost $46,000, its accumulated depreciation was $40,000, and its fair value was $10,000. DEF's equipment originally cost $47,000, its accumulated depreciation was $40,000, and its fair value was $11,400. ABC Inc. also paid DEF Inc. $1,400 in cash as part of the transaction. The transaction lacks commercial substance.

Transaction 3. To facilitate sales of their products to their customers, ABC Inc. and GHI Co. exchanged their luxurious interior furniture. GHI Co. paid ABC Inc. $60,000 to compensate for a difference in the grade of the furniture. On the date of the exchange, GHI's cost and market values of the furniture were as follows: Original Cost $300,000; Accumulated Depreciation $100,000; Fair Market Value $240,000 ABC's cost and market values of the furniture were as follows: Original Cost $300,000; Accumulated Depreciation $48,000; Fair Market Value $300,000

Required - Prepare Journal Entry and Balance Sheet?