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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.
Problem 1: What would the journal entries be on both companies' books, assuming the buildings are similar assets?
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