Mathews Company exchanged equipment used in its manufacturing operations plus $10,500 in cash for similar equipment used in the operations of Biggio Company. The following information pertains to the exchange.

			Mathews Co.		Biggio Co.
Equipment (cost)			$153,000		$146,000
Accumulated depreciation			$32,000		$17,600
Fair value of equipment			$132,500		$143,000
Cash given up			$10,500

\begin{tabular}{|l|l|} \hline 9 & Cash given \\ \hline 10 & \\ 11 & Instructions \end{tabular} 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 (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) \begin{tabular}{|l|l|l|l|l|l|l|l|l|} \hline \hline & A & B & C & D & E & F & H \\ \hline 34 & & & & & & & \\ \hline \end{tabular} (b) Prepare the journal entries to record the exchange on the books of both companies. 36 Assume that the exchange has commercial substance