Cardinals and the Rams are engaged in a nonmonetary exchange. Specifically, they will exchange their office buildings with each other. The transaction is structured as the following: Cardinals will give Rams its office building a fair market value of $13,000,000 (the original cost of the building is $5,800,000 and the accumulated depreciation on the building is $1,600,000). Rams will transfer their office building to the Cardinals. The original cost of Rams office building is $6,500,000 and the accumulated depreciation on the building is $740,000. In addition to exchanging the buildings, Rams also agrees to pay Cardinals $1,200,000 in cash and transfer 100 popcorn machines with a fair value of $100,000 (original cost of the 100 popcorn machines is $200,000 and the accumulated depreciation is $75,000). Cardinals and Rams record buildings and machines in separate accounts.

1.) prepare the journal entry to record the exchange for the CARDINALS

2.) prepare the journal entry to record the exchange for the RAMS