Southern Company owns a building that it leases to others. The buildings fair value is $1,850,000 and its book value is $1,160,000 (original cost of $2,450,000 less accumulated depreciation of $1,290,000). Southern exchanges this for a building owned by the Eastern Company. The buildings book value on Easterns books is $1,310,000 (original cost of $2,050,000 less accumulated depreciation of $740,000). Eastern also gives Southern $185,000 to complete the exchange. The exchange has commercial substance for both companies.

Required:

Prepare the journal entries to record the exchange on the books of both Southern and Eastern. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Southern Company:

Eastern Company: