Seaver Inc. exchanged a machine costing $400,000 with accumulated depreciation of $280,000 for a machine from the Goodin Company. Goodin paid $20,800 cash in addition to its machine (which cost $200,000 with accumulated depreciation of $68,000) for the Seaver machine. The Goodin machine has a fair value of $160,000.
Provide the necessary entries to record the transactions on both companies' books assuming the machine lacks commercial substance.

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The Answer of Seaver Inc. exchanged a machine costing $400,000 with accumulated depreciation of $280,000 for a machine from the Goodin Company. Goodin paid $20,800 cash in addition to its machine (which cost $200,000 with accumulated depreciation of $68,000) for the Seaver machine. The Goodin machine has a fair value of $160,000.
Provide the necessary entries to record the transactions on both companies' books assuming the machine lacks commercial substance.