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Windsor Corporation wishes to exchange a machine used in its operations. Windsor has received the following offers from other companies in the industry. 1. Sheridan

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

1. Sheridan Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both parties.)
2. Skysong Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.)
3. Concord Company offered to exchange a similar machine, but wanted $3,360 in addition to Windsors machine. (The exchange has commercial substance for both parties.)

In addition, Windsor contacted Marigold Corporation, a dealer in machines. To obtain a new machine, Windsor must pay $104,160 in addition to trading in its old machine.

Windsor

Sheridan

Skysong

Concord

Marigold

Machine cost $179,200 $134,400 $170,240 $179,200 $145,600
Accumulated depreciation 67,200 50,400 79,520 84,000 0
Fair value 103,040 77,280 103,040 106,400 207,200

For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company.

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