On August 1, Jekyl, Inc. exchanged productive assets with Hide, Co. Jekyls asset is referred to below as Asset A, and Hide, Co.s is referred to as Asset B. The following facts pertain to these assets.

		Jekyl Inc.		Hide, Co.
		Asset A		Asset B
Original cost		$96,000		$110,000
Accumulated depreciation (to date of exchange)		40,000		47,000
Fair value at date of exchange		60,000		75,000
Cash paid by Jekyl, Inc.		15,000
Cash received by Hide, Co.				15,000

Assume that the exchange of Assets A and B lacks commercial substance.

1. What is the amount of gain or loss (1) realized and (2) recognized for each company?
2. Prepare the journal entry to record the exchange for each company