G 1 02 Mathews Company exchanged equipment used in its manufacturing operations 2 plus $12,500 in cash for similar equipment used in the 3 operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. 5 6 Equipment (cost) $153,000 $146,000 7 Accumulated depreciation $31,000 $18,500 8 Fair value of equipment $132,500 $145,000 9 Cash given up $12,500 10 11 Instructions 12 (a) Prepare the joumal entries to record the exchange on the books of both companies 13 Assume that the exchange lacks commercial substance 14 Mathewes 15 Book Value Fair Value Gain (Loss) 16 17 18 19 20 Gain (Loss) 21 22 23 24 Baiggio 25 Book Value Fair Value 26 27 28 29 30 31 32 33 34 35 (6) Prepare the joumal 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 59 10 11 2 3 4 Gain (Loss) Baiggio Book Value Fair Value Gain (Loss) (6) Prepare the joumal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. Book Value Fair Value Gain (Loss) Baiggio Book Value Fair Value Gain (Loss)