Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange.
Grouper Co. Monty Co.
Equipment (cost) $38,080 $38,080
Accumulated depreciation 25,840 13,600
Fair value of equipment 17,000 21,080
Cash given up 4,080
Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Cred
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