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Beeman Company exchanged machinery with an appraised value of $$4,680,000,$ cost of $$7,200,000$ and accumulated depreciation of $$3,600,000$ with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $$4,520,000,$ cost of $$8,640,000,$ and accumulated depreciation of $$4,752,000.$ Lacey also gave Beeman $$160,000$ in the exchange. Assume depreciation has already been updated.

Instructions

$($a$)$ Prepare the entries on both companies' books assuming that the exchange had commercial substance. $($Round all computations to the nearest dollar.$)$

$($b$)$ Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. $($Round all computations to the nearest dollar.$)$