You are provided with the following information for two companies who exchanged capital assets (machines):

Prepare the journal entries for each of Companty A and Company B, assuming that the trade is one with commercial substance

Company A Cost $1,100 Accumulated amortization $350 Book value $750 Company B Cost $1,200 Accumulated amortization $555 Book value $645 Cash paid $80 Cash received $80 Fair market value of old machine Fair market value of old machine $625 $780