Presented below are two independent transactions. Both transactions have commercial substance.

1.) Mercy Co. exchanged old trucks (cost $67,000 less $21,000 accumulated depreciation) plus cash of $18,100 for new trucks. The old trucks had a fair value of $42,400.

2.)Pence Inc. trades its used machine (cost $12,630 less $4,210 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $11,320), Pence also paid cash of $2,630. Prepare the entry to record the exchange of assets by Mercy Co. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Options for Account Titles and Explanation: Accumlated Deprciation-Equipment(new), Equipment (old), Gain on disposal of Plant Assets, Equipment (new), Accumulated Depreciation- Equipment (old), Loss on Disposal of Plant Assets, Cash, No Entry.

Prepare the entry to record the exchange of assets by Pence Inc. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Options for Account Titles and Explanation: Accumlated Deprciation-Equipment(new), Equipment (old), Gain on disposal of Plant Assets, Equipment (new), Accumulated Depreciation- Equipment (old), Loss on Disposal of Plant Assets, Cash, No Entry.