Seymour Ltd. traded a used welding machine (cost $9,000, accumulated depreciation $2,000, fair value $3,000) for office

Question:

Seymour Ltd. traded a used welding machine (cost $9,000, accumulated depreciation $2,000, fair value $3,000) for office equipment with an estimated fair value of $8,000. Seymour also paid $4,000 cash in the transaction. Prepare the journal entry to record the exchange. T he equipment results in different cash flows for Seymour, compared with those the welding machine produced.