Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings. The following transaction occured in 2011:
March 31, 2012- Negotiations which began in 2011 were completed and a warehouse purchased 1/1/03at a cost of $3,200,000 with a fair market value of $2,000,0000 was exchange for a second warehouse which also had a fair market value of $2,000,000. The exchange had no commercial substance. Both parcels of land on which the warehouses were located were equal in value, and had a fair value equal to book value.
June 30, 2012- Machinery with a cost of $240,000 and accumulated depreciation trhough January 1 of $180,000 was exchange with $150,000 cash for a parcel of land with a fair market value of $230,000.prepare all appropriate journal entries for Moore Corporation for the above dates.