Presented below are two independent transactions.

1. Global Co. exchanged old trucks (cost $64,000 less $22,000 accumulated depreciation) plus cash of $17,000 for new trucks. The old trucks had a fair market value of $38,000.

2. Rijo Inc. trades its used machine (cost $12,000 less $4,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair market value of

$9,000). Rijo also paid cash of $2,000.

Instructions

(a) Prepare the entry to record the exchange of similar assets by Global Co.

(b) Prepare the entry to record the exchange of similar assets by Rijo Inc.