5. Sun Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work the accountant was assigned to total a batch of invoices with the use of an atheling machine. Before long, the accountant, who had never before seen such a machine managed to break the machine. Sun Corporation gave the machine plus Br 320 to Mon Company (denler) in exchange for a new machine. Assume the following information about the machines Sun Corp. Moon Co. Machine cost Hr 2600 Br 17080 Accumulated depreciation 1400 900 Fair value 850 1400 Required: a) Assuming the exchange has commercial substance, compute the cost of the new asset and pass the journal entry to record the exchange for both Companies 3 b) Assuming the exchange lacks commercial substance, compute the cost of the new asset