Swifty Corporation wishes to exchange a machine used in its operations. Swifty has received the following offers from other companies in the industry.

1.Nash Company offered to exchange a similar machine plus $29,440. (The exchange has commercial substance for both parties.

2.Crane Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.

3.Cheyenne Company offered to exchange a similar machine, but wanted $3,840in addition to Swifty's machine. (The exchange has commercial substance for both parties.)

In addition, Swifty contacted Ayayai Corporation, a dealer in machines. To obtain a new machine, Swifty must pay $119,040in addition to trading in its old machine.

Swifty Nash Crane Cheyenne Ayayai

Machine cost $204,800 $153,600 $194,560 $204,800 $166,400

Accumulated depreciation $76,800 $57,600 $90,880 $96,000 -0-

Fair value $117,760 $88,320 $117,760 $121,600 $236,800

No. Account Titles and Explanation Debit Credit 1. Swifty Corporation Nash Company 2. Swifty Corporation Crane Company. 3. Swifty_CorporationCheyenne Company 4. Swifty_Corporation Avayai Company (To record exchange of inventory) (To record cost of inventory)