F G 1 Q2 Mathews Company exchanged equipment used in its manufacturing operations 2 plus $7,000 in cash for similar equipment used in the 3 operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. 6 Equipment (cost) 7 Accumulated depreciation 8 Fair value of equipment 9 Cash given up $144.000 $36,000 $125,000 $7,000 $ 148,000 $18.000 $132.000 101 11 Instructions 12 (a) Prepare the journal entries to record the exchange on the books of both companies. 13 Assume that the exchange lacks commercial substance. 14 Mathewes alue Fair Value G ain (Loss) UNNO Interest Capitalization Exchange O Type here to search pboard Font Alignment A 24 Baiggio 25 Book Value Fair Value Gain (Loss) 35 (b) Prepare the journal entries to record the exchange on the books of both companies. 36 Assume that the exchange has commercial substance 37 Fair Value Gain (Loss) 38 Book Value 39 40 Interest Capitalization Exchange PURIL Clipboard F10 F A 38 Book Value Fair Value Gain (Loss) 47 Baiggio 48 Book Value Fair Value Gain (Loss) pboard Font Alignment 24 Baiggio 25 Book Value Fair Value Gain (Loss) 35 (b) Prepare the journal entries to record the exchange on the books of both companies. 36 Assume that the exchange has commercial substance 37 38 Book Value Fair Value Gain (Loss) 39 40 Interest Capitalization Exchange PUPIL Clipboard F10 F C Fair Value Gain (Loss) 38 Book Value 47 Baiggio 48 Book Value Fair Value Gain (Loss)