Account Title Options: Loss on Disposal of Equipment Cash Accumulated Depreciation - Equipment Gain on Disposal of Equipment Equipment (old) Equipment (new)

Additional Problem 8 Monty Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Flounder Ltd. The following information pertains to the exchange: Monty Corp. Flounder Ltd. Equipment (cost) Accumulated depreciation Fair value of old equipment Cash given up $84,000 45,000 42,200 1,600 $84,000 38,000 43,800 Both companies agreed that the exchange did not have commercial substance. Prepare the necessary journal entries to record the asset exchange on the books of both companies. (Credit account titles are automatically indented when the amount is etered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Monty Corporation: Account Titles and Explanation Debit Credit Flounder Ltd.: Account Titles and Explanation Debit Credit