Goodman Company exchanges an asset with The Pryce Corporation. Details of the exchange are as follows:

Goodmans Piece of equipment: Cost: $800,000 Accumulated depreciation: 230,000 Fair value: 700,000

Pryces building: Cost: $960,000 Accumulated depreciation:350,000 Fair value: 850,000

Required

a) Prepare the journal entry in the books of both Goodman and Pryce, assuming both are public companies.

b) Assume now that Goodman paid $80,000 in this transaction. Record the appropriate journal entry in Goodman books.

c) Repeat b) assuming now that Goodman is a private company and that the fair value of Pryces building is the most determinable fair value.