Yankee Manufacturing and Blue Jay Corporation, due to changes in their respective processes, exchanged some manufacturing machinery. The following information pertains to the exchange: Yankee Manufacturing

Blue Jay Corporation Machinery (original cost) $300,000 $330,000 Accumulated depreciation 187,500 132,000 Fair value of equipment 150,000 170,000 Cash paid 18,000 Cash received 18,000 REQUIRED: Prepare journal entries to record the exchange on the books of both Yankee Manufacturing and Blue Jay Corporation assuming the exchange is deemed to have commercial substance.