2. Aviator Inc. exchanged machinery with an appraised value of $ 1,130,000, a recorded cost of $1,7500,000 and accumulated depreciation of $925,000, for machinery that Space Corp. owns. Space's machinery has an appraised value of $ 1,120,000, a recorded cost of $ 2,150,000, and accumulated depreciation of $ 1,178,000. Space also gave Aviator $ 34,000 in the exchange. Assume depreciation has been updated to the date of exchange. Instructions a) Prepare the entries for Aviator assuming that the transaction does not have commercial substance.