Question 1

On August 1, Tamarisk, Inc. exchanged productive assets with Vaughn, Inc. Tamarisks asset is referred to below as Asset A, and Vaughn is referred to as Asset B. The following facts pertain to these assets.

		Asset A		Asset B
Original cost		$126,720		$145,200
Accumulated depreciation (to date of exchange)		52,800		62,040
Fair value at date of exchange		79,200		99,000
Cash paid by Tamarisk, Inc.		19,800
Cash received by Vaughn, Inc.				19,800

(a)

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Tamarisk, Inc. and Vaughn, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

Account Titles and Explanation	Debit	Credit
Tamarisk, Inc.s Books
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
Vaughn, Inc.s Books
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount	enter a credit amount
select an account title Accumulated Depreciation - Machinery (A)Accumulated Depreciation - Machinery (B)CashGain on Disposal of MachineryMachinery (A)Machinery (B)No Entry	enter a debit amount