Nonmonetary Exchange. Hodge Co. Exchanged Building 24 Which Has an Appraised Value

Essay

Nonmonetary exchange.
Hodge Co. exchanged Building 24 which has an appraised value of $4,800,000, a cost of $7,590,000, and accumulated depreciation of $3,600,000 for Building M belonging to Fine Co. Building M has an appraised value of $4,512,000, a cost of $9,030,000, and accumulated depreciation of $4,752,000. The correct amount of cash was also paid. Assume depreciation has already been updated.
InstructionsPrepare the entries on both companies' books assuming the exchange had no commercial substance. Show a check of the amount recorded for Building M on Hodge's books. (Round to the nearest dollar.)