2. Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance.

3.Prepare the journal entry on the books for Shubert Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that lacks commercial substance.

4. Prepare the journal entry on the books for Broadway Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that lacks commercial substance.

The Majestic Theatre and the St. James Theatre entered into a transaction on December 16, 20x5 to exchange some of their lighting equipment. On December 16, 20x5, the information for each theatre is as follows: Majestic 800,000 St. James 640,000 Original cost Accumulated depreciation Fair market value 560,000 260,000 400,000 350,000 Cash paid by Broadway to Shubert 50,000 Prepare the journal entry on the books for Majestic Theatre on December 16, 20x5, assuming that the transaction is considered an exchange that has commercial substance