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Question - Augustus company exchanged machinery with Birney Company. Immediately before the exchange Augustus had an appraised value of $1,950, and original cost of $2,700, and accumulated depreciation of $1,350. Immediately before the exchange, Birney's machine had an appraised value of $1,800, an original cost of $3,240, and accumulated depreciation of $1,782, Birney also gave Augustus $150 cash as part of the exchange.
1. Prepare the general journal entries on both companies books assuming that the exchange will result in different future cash flows.
2. Prepare the general journal entries on both companies books assuming that the exchange will not change future cash flows.
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