Current Attempt in Progress Teal Corporation wishes to exchange a machine used in its operations. Teal has received the following offers from other companies in the industry. 1. Flint Company offered to exchange a similar machine plus $24,840. (The exchange has commercial substance for both parties.) 2. Buffalo Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Carla Company offered to exchange a similar machine, but wanted $3,240 in addition to Teal's machine. (The exchange has commercial substance for both parties.) In addition, Teal contacted Sarasota Corporation, a dealer in machines. To obtain a new machine, Teal must pay $100,440 in addition to trading in its old machine. Teal Flint Buffalo Carla Sarasota Machine cost $172,800 $129,600 $164,160 $172,800 $140,400 Accumulated depreciation 64,800 48,600 76,680 81,000 -0- Fair value 99,360 74,520 99,360 102,600 199,800 No. Account Titles and Explanation Debit Credit 1. Teal Corporation Flint Company 2. Teal Corporation Buffalo Company 3. Teal Corporation Carla Company 4. Teal Corporation Sarasota Company (To record exchange of inventory) (To record cost of inventory)