on august 1, silver company

On August 1, Silver Company exchanged a machine for a similar machine owned by Wrangler Company. Silver's machine had an original cost of $70,000, accumulated depreciation to date of $34, 500, and a fair market value of $60,000. Wrangler's machine had an original cost of $90,000, accumulated depreciation of $45,000 and a fair value of $55,000. Wrangler also paid Silver $5,000 in cash. Required: Prepare the necessary journal entry by both companies to record this transaction assuming a. This transaction has commercial substance. b. This transaction lacks commercial substance