Exchange of Assets
Response to the following problem:
The Goodman Company acquired a truck from the Harmes Company in exchange for a machine. The machine cost $30,000, has a book value of $6,000, and has a market value of $9,000. The truck has a cost of $12,000 and a book value of $8,000 on Harmes' books.
Required
Prepare journal entries for the Goodman Company and the Harmes Company to record the exchange.