1. Kerry, Inc., exchanged land and cash of $7,100 for equipment. The land had a book value of $46,000 and a fair value of $50,100.

Required:

Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Cheney Company sold a 20-ton mechanical draw press for $61,100. The old draw press cost $78,900 and had a book value of $56,000.

Required: Prepare the journal entry to record the disposition. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)