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

Asset A Asset B

Original Cost $150,000 $167,000

Accumulated depreciation (to date of exchange) $51,000 $52,000

Fair value at date of exchange $105,000 $131,000

Cash paid by Orlando, Inc. $26,000 ---

Cash paid by Anaheim, Inc. --- $26,000

(a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Orlando, Inc. and Anaheim, Inc. in accordance with generally accepted accounting principles.

(b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Orlando, Inc. and Anaheim, Inc. in accordance with generally accepted accounting principles.