During the current year, Riverbed Drilling trades an old derrick that has a book value of $326,400 (original cost $816,000 less accumulated depreciation $489,600) for a new derrick from Marin Heavy Equipment Co. The new derrick cost Marin $707,200 to manufacture and is classified as inventory. The following information is also available.

		Riverbed Drilling.		Marin Heavy Equip. Co.
Fair value of old derrick		$285,600
Fair value of new derrick					$1,060,800
Cash paid		775,200
Cash received					775,200

Assuming that this exchange lacks commercial substance for Riverbed, prepare the journal entries on the books of (1) Riverbed Drilling and (2) Marin Heavy Equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)

No.	Account Titles and Explanation	Debit	Credit
1.	Riverbed Drilling
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
2.	Marin Heavy Equipment
	enter an account title to record exchange of inventory	enter a debit amount	enter a credit amount
	enter an account title to record exchange of inventory	enter a debit amount	enter a credit amount
	enter an account title to record exchange of inventory	enter a debit amount	enter a credit amount
	(To record exchange of inventory)
	enter an account title to record cost of inventory	enter a debit amount	enter a credit amount
	enter an account title to record cost of inventory	enter a debit amount	enter a credit amount
	(To record cost of inventory)