Beeman Company exchanged machinery with an appraised value of $3,532,000, a recorded cost of $5,364,000and accumulated depreciation of $2,682,000with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $3,369,500, a recorded cost of $6,470,000, and accumulated depreciation of $3,558,500. Lacey also gave Beeman $162,500in the exchange. Assume depreciation has already been updated.

Prepare the entries on both companies' books assuming that the exchange had commercial substance.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

Beeman

Account Titles and Explanation

Debit

Credit

Lacey

Account Titles and Explanation

Debit

Credit