Kingbird Corporation wishes to exchange a machine used in its operations. Kingbird has received the following offers from other companies in the industry. 1. 2. Oriole Company offered to exchange a similar machine plus $32,200. (The exchange has commercial substance for both parties.) Waterway Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Wildhorse Company offered to exchange a similar machine, but wanted $4,200 in addition to Kingbird's machine. (The exchange has commercial substance for both parties.) In addition, Kingbird contacted Sheffield Corporation, a dealer in machines. To obtain a new machine, Kingbird must pay $130,200 addition to trading in its old machine. Kingbird Oriole Waterway Wildhorse Sheffield Machine cost $224,000 Accumulated depreciation 84,000 $168,000 63,000 $212,800 99,400 $224,000 $182,000 105,000 -0- Fair value 128,800 96,600 128,800 133,000 259,000 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Cre 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 O for the amounts.) No. Account Titles and Explanation Debit 1. Kingbird Corporation Machinery Accumulated Depreciation-Machinery 84,000 Loss on Disposal of Machinery Cash Machinery Oriole Company Machinery Accumulated Depreciation-Machinery 32,200 128,800 Credit 224,000