On August 1, Pearl, Inc. exchanged productive assets with Martinez, Inc. Pearl's asset is referred to below as "Asset A," and Martinez' is referred to as "Asset B." The following facts pertain to these assets.

A B

Original cost $134,400 $154,000

Accumulated depreciation (to date of exchange) 56,000 65,800

Fair value at date of exchange 84,000 105,000

Cash paid by Pearl, Inc. 21,000

Cash received by Martinez, Inc 21,000

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Pearl, Inc. and Martinez, 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.)

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Pearl, Inc. and Martinez, 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.)