Alex Co exchanged a Machinery with Fred Inc. in exchange for a building. Alex also paid 60,000 to Fred for this exchange. Other details of the transaction are provided below: Alex Co. equipment: Fred Inc. Building: Cost $850,000 Cost $620,000 Accumulated depreciation 120,000 Accumulated depreciation 190,000 Fair value 560,000 Fair value 520,000

a) Prepare the journal entry in the books of both companies, assuming both are publicly traded. b) Assuming now that Alex is a private company and that the fair value of building is the most reliable fair value, prepare the journal entry for Alex Co.