Problem 10-8 Ayayai Corporation wishes to exchange a machine used in its operations. Ayayai has received the following offers from other companies in the industry. 1. Pina Company offered to exchange a similar machine plus $26,220. (The exchange has commercial substance for both parties.) 2. Grouper Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Monty Company offered to exchange a similar machine, but wanted $3,420 in addition to Ayayai's machine. (The exchange has commercial substance for both parties.) In addition, Ayayai contacted Flounder Corporation, a dealer in machines. To obtain a new machine, Ayayai must pay $106,020 in addition to trading in its old machine. Pina Grouper Monty Flounder 182,400 $136,800 $173,280 $182,400 $148,200 0- 104,880 78,660 104,880 108,300 210,900 85,500 Accumulated depreciation Fair value 68,40051,300 80,940 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 O for the amounts.) Credit No. Account Titles and Explanation 1. Ayayai Corporation Pina Company