Similar exchange with boot homework:

Quality Excavation exchanged an excavator costing $ 125,000 for an excavator from Digum Inc. costing $ 110,000. The book value on Digums was $ 80,000 and on Qualitys was $ 75,000. The fair market value on Quality was $ 82,000 and Digumss was $ 84,000. Quality paid Digum $ 2,000 in boot (cash).

Instructions: Record entries for both companies. Show your calculations for indicated gain and recognized gain.