Answer:
See the journal entries below.
Explanation:
<u>In the Book of Cynthia Co.</u>
Book value of Building 24 = Cost of Building 24 - Accumulated depreciation of Building 24 = $7,600,000 - $3,619,000 = $3,981,000
Gain on disposal of Building 24 = Building 24 an appraised value of - Book value of Building 24 = $4,800,000 - $3,981,000 = $819,000
Basis for Building M = Building M appraisal value - Gain on disposal of Building 24 = $4,560,000 - $819,000 = $3,741,000
Cash = Accumulated Depreciation of Building 24 + Basis for Building M - Cost of Building 24 -  Gain on Disposal of Building 24 = $3,619,000 + $3,741,000 - 7,600,000 - $819,000 = $1,059,000
The journal entries will look as follows:
<u>Accounts Title                                 Debit ($)                   Credit ($)      </u>
Accumulated Depreciation           3,619,000
Building M                                       3,741,000
Cash                                                1,059,000
   Building 24                                                                   7,600,000
   Gain on Disposal                                                             819,000
<u><em>To record the exchange of Building 24 for Building M from Waterway Co. </em></u>
<u>In the Book of Waterway Co. </u>
Building 24 = Building M cost + Cash - Building M depreciation = $9,096,000 + $1,059,000 - $4,747,000 = $5,408,000
The journal entries will look as follows:
<u>Accounts Title                                 Debit ($)                   Credit ($)      </u>
Accumulated Depreciation           4,747,000
Building 24                                    5,408,000                            
   Building M                                                                    9,096,000
   Cash                                                                              1,059,000
<u><em>To record the exchange of Building M for Building 24 from Cynthia Co. </em></u>