Indigo Corporation wishes to exchange a machine used in its operations. Indigo has received the following offers from other companies in the industry.

1.		Sweet Company offered to exchange a similar machine plus $34,040. (The exchange has commercial substance for both parties.)
2.		Pharoah Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3.		Novak Company offered to exchange a similar machine, but wanted $4,440 in addition to Indigos machine. (The exchange has commercial substance for both parties.)

In addition, Indigo contacted Splish Corporation, a dealer in machines. To obtain a new machine, Indigo must pay $137,640 in addition to trading in its old machine.

		Indigo		Sweet		Pharoah		Novak		Splish
Machine cost		$236,800		$177,600		$224,960		$236,800		$192,400
Accumulated depreciation		88,800		66,600		105,080		111,000		0
Fair value		136,160		102,120		136,160		140,600		273,800

For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (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.)

No.	Account Titles and Explanation	Debit	Credit
1.	Indigo Corporation
	Sweet Company
2.	Indigo Corporation
	Pharoah Company
3.	Indigo Corporation
	Novak Company
4.	Indigo Corporation
	Splish Company
	(To record exchange of inventory)
	(To record cost of inventory)