Problem 10-08 Indigo Corporation wishes to exchange a machine used in its operations. Indigo has received the following offers from other companies in the industry. 1. Sweet Company offered to exchange a similar machine plus $28,060. (The exchange has commercial substance for both parties.) 2. Pharoah Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Novak Company offered to exchange a similar machine, but wanted $3,660 in addition to Indigo's machine. (The exchange has commercial substance for both parties.) 3. No In addition, Indigo contacted Splish Corporation, a dealer in machines. To obtain a new machine, Indigo must pay $113,460 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Indigo $195,200 73,200 112,240 Sweet $146,400 54,900 84,180 Pharoah $185,440 86,620 112,240 Novak $195,200 91,500 115,900 Splish $158,600 -0- 225,700 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (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.)