Record the exchange transactions for:

A: Baez Company

B: Soler Company

Show all necessary calculations.

2. Baez and Soler Company enter into an agreement for the trade of certain a nonmonetary assets (machinery). The assets involved perform the same function and are employed in the same line of business. The reason for the exchange involves the size of the product produced by the machines, and the transaction is deemed to not have any commercial substance. The machines exchanged by Baez Company have a book value of $245,000 (cost $325,000 less accumulated depreciation of $80,000) and a fair value of $275,000. The machines given up by Soler Company have a book value of $260,000 (cost $350,000 less accumulated depreciation of $90,000 and a fair value of $290,000. In addition to the exchange of the machines, Baez Company agrees to pay Soler Company $15,000 as part of the transaction