On October 15, 2016, the Brown Company exchanged equipment with the Filzinger Corporation. The facts of the exchange are as follows:

Browns Asset Filzingers Asset

Original cost $300,000 $278,000

Accumulated depreciation 200,000 220,000

Fair value 125,000 110,000

To equalize the exchange, Filzinger paid Brown $15,000 in cash.

Required:

Record the exchange for both Brown and Filzinger. Assume the exchange has economic substance.