Exercise 2-Nonmonetary exchange. (22 points) Finkel Company exchanged machinery with a fair value of $2,700,000, a recorded cost of $7,200,000 and accumulated depreciation of $5,400,000 with Hope Corporation for machinery Hope owns. The machinery that Hope owns has a fair value of $2,620,000, a recorded cost of $8,640,000, and accumulated depreciation of $6,200,000. Hope also gave Finkel $80,000 of cash in the exchange. Assume depreciation has already been updated. Instructions (a) Prepare the entries on both companies' books assuming that the exchange had commercial substance. (b) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance.