CAMROSE Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of CNC Limited. CAMROSE also paid CNC $2,900 in cash. The following information pertains to the exchange.

CAMROSE CNC

The journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance.

Prepare the journal entries to record the exchange on the books of both companies assuming the exchange is determined not to have commercial substance.

CAMROSE

CNC

Equipment (cost) Accumulated depreciation Fair value of equipment $45,000 $48,000 21,500 30,500