Hodge Co. exchanged Building 24 which has an appraised value of $3,000,000, a cost of $5,060,000, and accumulated depreciation of $2,400,000 for Building M belonging to Fine Co. Building M has an appraised value of $2,800,000, a cost of $6,020,000, and accumulated depreciation of $3,168,000. The correct amount of cash was also paid. Assume depreciation has already been updated.

Instructions

Prepare the entries on both companies' books assuming the exchange has commercial substance.