1. Sweet Corporation wishes to exchange a machine used in its operations. Sweet has received the following offers from other companies in the industry. Pharoah Company offered to exchange a similar machine plus $47,600. (The exchange has commercial substance for both parties.) Novak Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Splish Company offered to exchange a similar machine, but wanted $14,960 in addition to Sweet's machine. (The exchange has commercial substance for both parties.) 2. 3. In addition, Sweet contacted Blossom Corporation, a dealer in machines. To obtain a new machine, Sweet must pay $68,000 in addition to trading in its old machine. Sweet Machine cost Accumulated depreciation Fair value $272.000 102,000 149.600 Pharoah $217,600 108.800 102,000 Novak $179,520 62.560 149,600 Splish $326,400 190,400 164,560 Blossom $136,000 -0- 217,600 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. Debit Credit No. Account Titles and Explanation 1. Sweet Corporation I Pharoah Company 2. Sweet Corporation Novak Company 3. Sweet Corporation Splish Company 4. Sweet Corporation Blossom Company (To record exchange of inventory) (To record cost of inventory)