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Southern Company owns a building that it leases to others. The buildings fair value is...

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Accounting

Southern Company owns a building that it leases to others. The buildings fair value is $1,800,000 and its book value is $1,120,000 (original cost of $2,400,000 less accumulated depreciation of $1,280,000). Southern exchanges this for a building owned by the Eastern Company. The buildings book value on Easterns books is $1,270,000 (original cost of $2,000,000 less accumulated depreciation of $730,000). Eastern also gives Southern $180,000 to complete the exchange. The exchange has commercial substance for both companies. Required: Prepare the journal entries to record the exchange on the books of both Southern and Eastern. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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