Southern Company owns a building that it leases to others. The building's fair value is $1,900,000 and its book value is $1,200,000 (original cost of $2,500,000 less accumulated depreciation of $1,300,000). Southern exchanges this for a building owned by the Eastern Company. The building's book value on Eastern's books is $1,350,000 (original cost of $2,100,000 less accumulated depreciation of $750,000). Eastern also gives Southern $190,000 to complete the exchange. The exchange has commercial substance for both companies.
Prepare the journal entries to record the exchange on the books of both Southern and Eastern.