2. Karen Company exchanged an equipment with Klaire Company with the following data: Karen Company Klaire Company Equipment Php 1,000,000 Php 4,000,000 Accumulated Depreciation Php 200,000 Php 2,200,000 Php 800,000 Php 1,800,000 Php 1,200,000 Php 1,400,000 Php 200,000 Carrying Amount Fair Value Cash paid by Karen to Klaire Php 200,000 Required: Based on the above facts, answer the following: 1) Assume the transaction has a commercial substance, how much is: A. The cost of the equipment to be recognized by Karen Company B. The gain (loss) on exchange to be recognized by Karen Company 2) Assume the transaction lacks commercial substance, how much is A. The cost of the equipment to be recognized by Karen Company B. The gain (loss) on exchange to he recognized by Karen Company