Southern company owns a building that it leases to others. the building’s fair value is $2,350,000 and its book value is $1,560,000 (original cost of $2,950,000 less accumulated depreciation of $1,390,000). southern exchanges this for a building owned by the eastern company. the building’s book value on eastern’s books is $1,710,000 (original cost of $2,550,000 less accumulated depreciation of $840,000). eastern also gives southern $235,000 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.)