On August 1, Headland, Inc. exchanged productive assets with Sage, Inc. Headlands asset is referred to below as Asset A, and Sage is referred to as Asset B. The following facts pertain to these assets. Asset A Asset B Original cost $138,240 $158,400 Accumulated depreciation (to date of exchange) 57,600 67,680 Fair value at date of exchange 86,400 108,000 Cash paid by Headland, Inc. 21,600 Cash received by Sage, Inc. 21,600

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Headland, Inc. and Sage, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Headlands Inc Books
Sage Inc Books

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Headland, Inc. and Sage, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Headlands Inc Books
Sage Inc Books