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Question - 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. What would the journal entries be on both companies' books, assuming the buildings are similar assets?
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