6 During the current year, Tang Ltd. traded in a small milling machine for a larger mill thatTang expects will be more useful for the particular contracts that the company has to fulfill over the next couple of y 10 marks The new mill was acquired from Zhu Manufacturing Inc., which has agreed to take the smaller equipment as trade-ins and also pay $17,750 cash toTang Ltd. The new mill cost Zhu $155,000 to manufacture and is classified as inventory. The following information is available: Tang Cost of smaller mill 245000 Accumulated depreciation, smaller mill 33000 Fair value, smaller mill Fair value of new larger mill 215500 Zhu 198000 Cash paid Cash received Instructions 17500 17500 a. Assume that this exchange has commercial substance. Prepare the journal entries on the books of (1) Tang and (2) Zhu Manufacturing. Zhu uses a perpetual inventory system. b. Assume that this exchange lacks commercial substance. Prepare the journal entries on the books of (1) Tang and (2) Zhu Manufacturing. Zhu uses a perpetual inventory system.