Assets Acquired by Exchange
Response to the following problem:
The Bremer Company made the following exchanges of assets during 2010:
1. Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000.
2. Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000.
3. Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000.
4. Acquired a car by giving a truck that had originally cost $20,000, has a book value of $15,000, and has a "blue book" value of $16,800. In addition the company received $1,000 cash.
Required:
Prepare the journal entry of the Bremer Company for each exchange.