The production manager of Ayayai Corporation wants to acquire a different brand of machine by exchanging the machine that it currently uses in operations for the brand of equipment that others in the industry are using. The brand being used by other companies is more comfortable for the operators because it has different attachments that allow the operators to adjust the controls for a variety of arm and hand positions. The production manager has received the following offers from other companies:

1.		Secord Corp. offered to give Ayayai a similar machine plus $25,530 in exchange for Ayayais machine.
2.		Bateman Corp. offered a straight exchange for a similar machine with essentially the same value in use.
3.		Shripad Corp. offered to exchange a similar machine with the same value in use, but wanted $8,880 cash in addition to Ayayais machine. Assume that the exchange is nonmonetary and lacks commercial substance.
4.		The production manager has also contacted Ansong Corporation, a dealer in machines. To obtain a new machine from Ansong, Ayayai would have to pay $103,230 and also trade in its old machine.

Ayayais equipment has a cost of $177,600, a net book value of $122,100, and a fair value of $102,120. The following table shows the information needed to record the machine exchange between the companies:

		Secord		Bateman		Shripad		Ansong
Machine cost		$133,200		$163,170		$177,600		$144,300
Accumulated depreciationmachinery		49,950		78,810		83,250		-0-
Fair value		76,590		102,120		111,000		205,350

Part 1

For each of the four independent situations, assume that Ayayai accepts the offer. Prepare the journal entries to record the exchange on the books of each company. Assume that transactions 2 and 3 lack commercial substance for Bateman Company and Shripad Company respectively. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)