Prepare the journal entry for green company

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Ice Mountain Company exchanged machinery with an appraised value of $1,755,000, a recorded cost of $2,700,000 and Accumulated Depreciation of $1,350,000 with Green Corporation for machinery Green owns. The machinery has an appraised value of $1,695,000, a recorded cost of $3,240,000, and Accumulated Depreciation of $1,782,000. Green also gave Ice Mountain $60,000 in the exchange. Assume depreciation has already been updated.

1.Prepare the journal entry for Green Company assuming that the exchange had commercial substance.

2. Assume that the exchange lacked commercial substance. Prepare the journal entry for Green Company.

3. Assume that the exchange lacked commercial substance. Prepare the journal entry for Ice Mountain Company.

Reference no: EM13523353

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