II. Nonmonetary Exchange Farley Company exchanged equipment used in its manufacturing operations plus S16,000 in cash for similar equipment used in the operations of Clarke Company. The following information pertains to the exchange. Farley Clarke Equipment (Cost) S224,000 $224,000 Accumulated Depreciation 152.000 120,000 Fair Value of Equipment 108,000 124,000 Cash Given Up 16,000 Cash Received 16,000 = Instructions: (a) Assume that the exchange lacks commercial substance. Prepare the journal entries to record the exchange on the books of both companies. (b) Assume that the exchange has commercial substance. Prepare the journal entries to record the exchange on the books of both companies