Holyfield wishes to exchange a machine used in its operations. Heat has received the following offers from other companies in the industry: 1. James Company offered to exchange a similar machine plus $35,000. (The exchange has commercial substance for both parties.) 2. Wade Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Labor Company offered to exchange a similar machine, but wanted $11,000 in addition to Heat's machine. (The exchange has commercial substance for both parties.) In addition, Heat contacted Jackson Corporation, a dealer in machines. To obtain a new machine, Heat must pay $50,000 in addition to trading in its old machine. Heat James Wade Labor Jackson Machine cost $200,000 $160,000 $132,000 $240,000 $100,000 Accumulated depreciation 75,000 80,000 46,000 140,000 Fair value 110,000 75,000 110,000 121,000 160,000 Instructions For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company