During the current year, Cullumber Drilling trades an old derrick that has a book value of $316,800 (original cost $792,000 less accumulated depreciation $475,200) for a new derrick from Riverbed Heavy Equipment Co. The new derrick cost Riverbed $686,400 to manufacture and is classified as inventory. The following information is also available.

		Cullumber Drilling			Riverbed Heavy Equip. Co.
Fair value of old derrick		$277,200
Fair value of new derrick					$1,029,600
Cash paid		752,400
Cash received					752,400

(a)

Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Cullumber Drilling and (2) Riverbed Heavy Equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

URGENT PLEASE HELP