Kelsey Co. exchanged Building 26 which has an appraised value of $4,800,000, a cost of $7,590,000, and accumulated depreciation of $3,600,000 for Building K belonging to Dino Co. Building K has an appraised value of $4,512,000, a cost of $9,030,000, and
accumulated depreciation of $4,752,000. The correct amount of cash was also paid.
Assume depreciation has already been updated.
Instructions
Prepare the entries on both companies' books assuming the exchange had no commercial substance. Show a check of the amount recorded for Building K on Kelsey's books. (Round to the nearest dollar.)