Wilhelm Company exchanged a piece of equipment with a cost of $300,000 and accumulated depreciation of
$240,000 for land owned by James Corporation. No cash was exchanged. James' land had an original cost of
$190,000. At the date of exchange, both assets had a fair market value of $180,000.
Required:
Prepare the journal entry that each company should record.

Question

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The Answer of Wilhelm Company exchanged a piece of equipment with a cost of $300,000 and accumulated depreciation of
$240,000 for land owned by James Corporation. No cash was exchanged. James' land had an original cost of
$190,000. At the date of exchange, both assets had a fair market value of $180,000.
Required:
Prepare the journal entry that each company should record.

Wilhelm Company Exchanged a Piece of Equipment with a Cost