cash for similar equipment used in the operations of Underdog Company. The following information pertains to the exchange. Topdog Underdog Equipment (cost) $40,000 $50,000 Accumulated depreciation 30,000 30,000 8 Fair value of equipment 12,000 15,000 9 Cash given up 3,000. 0 22 a. b. 23 1 Instructions: Calculate the gain or loss on exchange for each of the two companies. Prepare the journal entries to record the exchange on the books of both companies when the exchange lacks commercial substance. 24 25 a. 26 + 27 28 29 130 131 132 133 134 135 136 b. 137 138 Topdog: Accounts Debit Credit 139 140 141 142 143 144 145 Underdog 146 Accounts Debit Credit Sheet1 A B D E 04. Topdog Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Underdog Company. The following 113 information pertains to the exchange. 114 115 Topdog Underdog 116 Equipment (cost) $40,000 $50,000 117 Accumulated depreciation 30,000 30,000 118 Fair value of equipment 12,000 15,000 119 Cash given up 3,000. 120 121 Instructions: 122 b. 123 Calculate the gain or loss on exchange for each of the two companies. Prepare the journal entries to record the exchange on the books of both companies when the exchange lacks commercial substance. 124 125 a. 126 127 128 129 130 131 132 133 134 135 136 b. 137 138 Topdog Accounts Debit Credit 139 140 141 142 143 144 145 Underdog 146 Sheet1 Accounts Debit Credit F G