Q2 Mathews Company exchanged equipment used in its manufacturing operations plus $12,500 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) Accumulated depreciation Fair value of equipment Cash given up $153,000 $31,000 $132,500 $12,500 $146,000 $18,500 $145,000 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)