Dunc Surf Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Xander Limited. Dunc Surf also paid Xander $3,100 in cash. The following information pertains to the exchange.

Dunc Surf Xander

Equipment (cost) $57,000 $61,500

Accumulated depreciation $31,250 $20,000

Fair value of equipment $27,500 $30,600

Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance Here is a link to a screenshot of the format the journal entries should follow. https://gyazo.com/7210044cabe3cbccf0dd307b6f9cfb72

Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined not to have commercial substance. https://gyazo.com/604a2482cb9013f0dd49a1e8cb7e0357