On April 30, Roberts Company exchanged productive assets with Marilyn Corp. The following information relates to two of these exchanges.

EXCHANGE A:

Roberts Marilyn

Asset given up truck computer

Cost $21,000 $18,000

Accumulated Depreciation 5,000 5,000

Fair market value 15,000 14,000

In addition, Marilyn will give Roberts $1,000. Both companies have determined that this transaction HAS commercial substance.

Requirement 1: Provide the journal entry for Marilyn in Exchange A.

EXCHANGE B:

Roberts Marilyn

Asset given up truck computer

Cost $38,000 $70,000

Accumulated Depreciation 6,000 4,000

Fair market value 52,000 60,000

In addition, Roberts will give Marilyn $8,000. Both companies have determined that this transaction LACKS commercial substance.

Requirement 2: Provide the journal entry for Roberts in Exchange B.