Q2 Mathews Company exchanged equipment used in its manufacturing operations
plus	$9,800	in cash for similar equipment used in the
operations of Biggio Company. The following information pertains to the exchange.
			Mathews Co.		Biggio Co.
Equipment (cost)			$153,000		$146,000
Accumulated depreciation			$32,000		$19,000
Fair value of equipment			$122,200		$132,000
Cash given up			$9,800
Instructions
(a) Prepare the journal entries to record the exchange on the books of both companies.
Assume that the exchange lacks commercial substance.
Mathewes
Book Value		Fair Value		Gain (Loss)
Baiggio
Book Value		Fair Value		Gain (Loss)
(b) Prepare the journal entries to record the exchange on the books of both companies.
Assume that the exchange has commercial substance.
Book Value		Fair Value		Gain (Loss)
Baiggio
Book Value		Fair Value		Gain (Loss)