P10-8 (L04) (Nonmonetary Exchanges) Holyfield Corporation wishes to exchange a machine used in its operations. Holy- field has received the following offers from other companies in the industry 1. Dorsett Company offered to exchange a similar machine plus $23,000. (The exchange has commercial substance for both parties.) 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Liston Company offered to exchange a similar machine, but wanted $3,000 in addition to Holyfield's machine. (The exchange has commercial substance for both parties.) In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new machine, Holyfield must pay $93,000 in addition to trading in its old machine Holyfield Dorsett Winston Machine cost Accumulated depreciation Fair value Greeley $160,000 $120,000$152,000 $160,000 $130,000 185,000 60,000 92,000 45,000 69,000 71,000 92,000 75,000 95,000 Instructions For each of the four independent situations , pre pare the journal entries to record the exchange on the books of each company P10-9 (L04) (Nonmonetary Exchanges) On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A," and Wi ggins' is referred to as "Asset B." The following facts pertain to these assets Asset A Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Hyde, Inc. Cash received by Wiggins $96,000 40,000 60,000 15,000 Asset B $110,000 47,000 75,000 Inc. 15,000 Instructions (a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins e with generally accepted accounting principles Inc. in acco (b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc