Windy and Krook Company enter into an agreement for the trade of certain nonmonetary assets. The machines exchanged by Windy Company have a book value of $245000 (cost $325000 less accumulated depreciation of $80000) and a fair value of $275000. The trucks given up by Krook Company have a book value of $260000 (cost $350000 less accumulated depreciation $90000) and a fair value of $290000. In addition to the exchange of the assets, Windy agrees to pay Krook Company $15000 as part of the transaction. Assume that the exchange lacks commercial substance.

Instructions: Record the exchange transactions for Windy Company and Krook Company.

For Windy:

Date Account Titles Debit Credit

Step 1: Assets given up: ? Assets Received: ? Step 2: Gain/loss of: ?

BV of: ?

FV of: ?

For Krook:

Date: Account Titles: Debit: Credit:

Step 1: Assets given up: ? Assets Received: ? Step 2: Gain/loss of: ?

BV of: ?

FV of: ?