Miley Corp. exchanges old equipment that costs $14,000 (accumulated depreciation of $6,300) for new equipment. The fair value of the new equipment is $11,200. The fair value of the old equipment cannot be reliably estimated.

Required

Prepare the entry to record acquisition of the new equipment under each of the following separate cases. a. Transaction has commercial substance. No cash is involved. b. Transaction has commercial substance. Cash of $4,200 is paid by Miley. c. Transaction lacks commercial substance. No cash is involved. d. Transaction lacks commercial substance. Cash of $1,400 is paid by Miley. e. Transaction lacks commercial substance. Cash of $2,800 is received by Miley. Prepare the entry to record acquisition of the new equipment under each of the following separate cases. a. Transaction has commercial substance. No cash is involved. b. Transaction has commercial substance. Cash of $4,200 is paid by Miley.

Prepare the entry to record acquisition of the new equipment under each of the following separate cases. a. Transaction has commercial substance. No cash is involved. b. Transaction has commercial substance. Cash of $4,200 is paid by Miley. Prepare the entry to record acquisition of the new equipment under each of the following separate cases. c. Transaction lacks commercial substance. No cash is involved. d. Transaction lacks commercial substance. Cash of $1,400 is paid by Miley. e. Transaction lacks commercial substance. Cash of $2,800 is received by Miley. Note: Round answers to the nearest whole dollar