On August 1, 2020 Gillians Gems exchanged productive Assets with Taras Treasures with the following data related to the Assets:

Gillians Taras

Equipment cost $96,000 $110,000

Accumulated Depreciation $40,000 $47,000

Fair Value, Date Exchange $60,000 $75,000

Cash Paid by Gillian $15,000

Cash Received by Tara $15,000

Required:

1. Assuming the above listed transaction has Commercial Substance, record the exchange for both Gillians Gems and Taras Treasures in accordance with GAAP.
2. Record the same entry, assuming the transaction lacks Commercial Substance.