Alatorre Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Alatorre Corporation gave the machine plus $320 to Mills Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Alatorre Corp. (Old Machine) Mills Co. (New Machine) Machine cost $290 $270 Accumulated depreciation 140 -0- Fair value 85 405 For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.)