Algon Company owns a machine that cost $560,000, has a book value of 240,000, and an estimated fair value of 480,000. Nogal COmpany has a machine that cost 720,000 has accumulated depreciation of 400,000 and an estimated fair value of 640,000. Algon pays Nogal cash of 160,000. Assume the trade has commercial substance.
1. Record the exchange on Algon Company Books
2. Record the exchange on Nogal Company's Books