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Vaughn Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Bramble Company. The following
Vaughn Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Bramble Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Vaughn Co $29,120 19,760 13,000 3,120 Bramble Co $29,120 10,400 16,120 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Vaughn Company Debit Credit Bram ble Company
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