Q6 A Cheng Company has recently decided to accept a proposal from the City of Bel Aire that publicly owned property with a large warehouse located on it will be donated to Cheng if Cheng will build a branch plant in Bel Aire. The appraised value of the property is $386,000 and of the warehouse is $835,000. Prepare the entry by Cheng for the receipt of the properties. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Q6 B.A machine cost $244,800, has annual depreciation expense of $48,960, and has accumulated depreciation of $122,400 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $98,570, it is exchanged for a similar machine with a fair value of $291,100 and the proper amount of cash is paid. The exchange lacked commercial substance. Prepare all entries that are necessary at April 1, 2018. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
April 1, 2018
	(To record depreciation)
April 1, 2018

Account Titles and Explanation	Debit	Credit