Alice's Restaurant and Bob's Breakfast Bonanza are restaurants. They decide to exchange kitchen equipment. The exchange lacks commercial substance. Alice has equipment with a fair value of $40.000, an original cost of $85, 000 and accumulated depreciation of $50, 000. Bob has equipment with a fair value of $50.000. a carrying value of $40, 000. Bob's equipment has $12, 000 of accumulated depreciation. 1. Illustrate the economics of the transaction. 2. Compute Alice's gain or loss and record the appropriate journal entry on the exchange. 3. Compute Bob's gain or loss and record the appropriate journal entry on the exchange. 4 Suppose you had been told that Bob's company was a dealer of kitchen equipment (not a restaurant). If the cost of Bob's kitchen equipment was $40, 000. what would be the journal entry Bob would record for this transaction