Hawk, Inc. exchanged its truck with a van that Seabird co. owned on 12/2/2019. The following information pertains to the truck and the van:

Hawks Truck Seabirds Van

Cost = $60,000, Cost = $55,000

Accumulated depreciation = 20,000 A/D = 25,000

Fair Market value = 50,000 Fair Market value= 40,000.

Seabird paid cash of $10,000, additionally to Hawk.

Instructions: Prepare any necessary journal entries for Hawk and Seabird if it is an exchange without commercial substance.