On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:
_________________________________ Robers' Asset ______ Phifer's Asset
Original cost .................................... $120,000 ............ $140,000
Accumulated depreciation ................... 55,000 ............ 63,000
Fair value ....................................... 75,000 ............ 70,000
To equalize the exchange, Phifer paid Robers $5,000 in cash.
Required:
Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.