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On August 1, Ivanhoe, Inc. exchanged productive assets with Shamrock, Inc. Ivanhoe’s asset is referred to...

On August 1, Ivanhoe, Inc. exchanged productive assets with Shamrock, Inc. Ivanhoe’s asset is referred to below as “Asset A,” and Shamrock’ is referred to as “Asset B.” The following facts pertain to these assets.

Asset A

Asset B

Original cost $111,360 $127,600
Accumulated depreciation (to date of exchange) 46,400 54,520
Fair value at date of exchange 69,600 87,000
Cash paid by Ivanhoe, Inc. 17,400
Cash received by Shamrock, Inc. 17,400
Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Ivanhoe, Inc. and Shamrock, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Ivanhoe, Inc.’s Books

    Cash    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)    

    Machinery (A)    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Machinery (B)    

    Cash    Accumulated Depreciation-Machinery (B)    Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)    Gain on Disposal of Machinery    

    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Machinery (B)    Machinery (A)    Gain on Disposal of Machinery    

    Machinery (B)    Machinery (A)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Accumulated Depreciation-Machinery (B)    

Shamrock, Inc.’s Books

    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Cash    Gain on Disposal of Machinery    Machinery (B)    Machinery (A)    

    Machinery (A)    Cash    Accumulated Depreciation-Machinery (A)    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    Machinery (B)    

    Machinery (A)    Cash    Accumulated Depreciation-Machinery (B)    Accumulated Depreciation-Machinery (A)    Gain on Disposal of Machinery    Machinery (B)    

    Machinery (A)    Machinery (B)    Cash    Accumulated Depreciation-Machinery (A)    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    

    Accumulated Depreciation-Machinery (A)    Machinery (B)    Machinery (A)    Cash    Accumulated Depreciation-Machinery (B)    Gain on Disposal of Machinery    

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Ivanhoe, Inc. and Shamrock, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Ivanhoe, Inc.’s Books

Shamrock, Inc.’s Books

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