A review of the books of Lakeshore Electric Co. disclosed that there were five transactions involving gains

Question:

A review of the books of Lakeshore Electric Co. disclosed that there were five transactions involving gains and losses on the exchange of fixed assets. The transactions were recorded as indicated in the following ledger accounts:

Investigation disclosed the following facts concerning these dealer-to-dealer transactions:
(a) Exchanged a piece of equipment with a $50,000 original cost, $20,000 book value, and $30,000 current market value for a piece of similar equipment owned by Highlite Electric, which had a $60,000 original cost, $10,000 book value, and a $30,000 current market value.
(b) Exchanged a machine€”cost, $70,000; book value, $10,000; current market value, $40,000€”for a similar machine€”market value, $35,000€”and a €œsmall€ amount in cash, $5,000.
(c) Exchanged a building€”cost, $150,000; book value, $40,000; current market value, $30,000€”for a building with market value of $24,000 plus cash of $6,000.
(d) Exchanged a factory building€”cost, $850,000; book value, $460,000; current market value, $550,000€”for equipment owned by Romeo Inc. That had an original cost of $900,000, accumulated depreciation of $325,000, and current market value of $550,000.
(e) Exchanged a patent€”cost, $12,000; book value, $6,000; current market value, $3,000€”and cash of $1,000 for another patent with market value of $4,000.

Instructions:
Analyze each recorded transaction as to its compliance with generally accepted accounting principles. Prepare adjusting journal entries whererequired.