Problem: (Nonmonetary Exchanges with Boot) Susquehanna Corporation wishes to exchange a machine used in its operations. Susquehanna has received the following offers from other companies in the industry.
1. Choctaw Company offered to exchange a similar machine plus $23,000.
2. Powhatan Company offered to exchange a similar machine.
3. Shawnee Company offered to exchange a similar machine, but wanted $8,000 in addition to Susquehanna's machine.
In addition, Susquehanna contacted Seminole Corporation, a dealer in machines. To obtain a new machine, Susquehanna must pay $93,000 in addition to trading in its old machine.
Susquehanna Choctaw Powhatan Shawnee Seminole
Machine cost $160,000 $120,000 $147,000 $160,000 $130,000
Accumulated 50,000 45,000 71,000 75,000 -0-
depreciation
Fair value 92,000 69,000 92,000 100,000 185,000
Instructions:
For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Round to nearest dollar.)