Hi,

Please help with the following exercise:

Pet Food Corporation follows a policy of a 10% depreciation charge per year on machinery and a 5% depreciation charge per year on buildings.

The following transactions occurred in 2018:

• In March 31, A warehouse which Pet Food had purchased on January 1, 2009 for $1.7 million (with a current fair value of $1 million) was exchanged for another warehouse which also had a current fair value of $1 million. Depreciation has been properly charged from Jan 1, 2009 through Dec 31, 2017. Both parcels of land on which the warehouses were located were equal in value and had a fair value equal to book value.
• In June 30, Machinery with a cost of $120,000 and accumulated depreciation through December 31, 2017 of $90,000 was exchanged, along with $75,000 cash, for a parcel of land with a fair market value of $115,000.

1. what are all journal entries that are required to record the above events and transactions. Round all values to the nearest dollar.