Sunny Company traded a manual pressing machine for an automated pressing machine and gave $45,000 cash. The manual pressing machine cost $475,000, had a net book value of $340,000, and a fair value of $355,000. The automated pressing machine was originally purchased by Cloud Company for $500,000 and had a net book value of $410,000. It has a fair market value of $420,000. Determine the value of the asset received for Sunny and Cloud assuming the exchange does not have commercial substance.

Please include the appropriate dollar sign and commas (example $25,000). You must show all work including the t-account entries on your scrap piece of paper to receive credit for this problem.

Value of the Automated Pressing Machine on Sunny's Books:

Value of the Manual Pressing Machine on Cloud's Books: