The equipment is being used in the operations of the business. The equipment was purchased by Wall by the issuance of a two-year, $250,000 non-interest bearing note. The controller recorded the purchase at $250,000. His rationale for this was based on several items as he explained to you. First, the note is only two years in duration and, therefore, the face value is very close to the fair value. Second, the seller accepted the note under these conditions. Finally, Wall Company is not in any financial difficulty at the time and they could have readily borrowed the money to pay for the purchase of the equipment on the date of the purchase. In fact, Wall has a line of credit available in excess of the purchase price with a current interest rate of 6.5%. Based on these facts, Eric believes $250,000 is an appropriate amount to record the new equipment.

The second transaction involved the exchange of machinery for office equipment. The machinery had a book value of $75,000 and a fair value of $90,000 at the time of the exchange. The machinery was idle at the time of the exchange due to a change in Wall's manufacturing process. Eric has stated that the office equipment is more valuable to the company than the machinery. He recorded the office equipment at the book value of the machinery ($75,000). His rationale for this recording is that: (1) no cash was involved; (2) the assets have similar useful lives remaining; and (3) the assets have approximately identical fair values.

How would you record this under FASB?