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Beeman Company exchanged machinery with an appraised value of $292,500, a recorded cost of $450,000 and accumulated depreciation of $225,000 with Lacey Corporation for machinery
Beeman Company exchanged machinery with an appraised value of $292,500, a recorded cost of $450,000 and accumulated depreciation of $225,000 with Lacey Corporation for machinery Lacey owns. Laceys machinery has an appraised value of $282,500, a recorded cost of $540,000, and accumulated depreciation of $297,000. Lacey also gave Beeman $10,000 cash in the exchange. Assume depreciation has already been updated. (14 points) Assuming the exchange lacked commercial substance, record entries for both companies.
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