Question 3 (10 marks) Hennessey Corporation exchanged land for equipment. The land had a book value of $ 300,000 (cost $310,000, accumulated depreciation $10,000) and a fair value of $ 320,000. Hennessey paid the owner of the equipment $5,000 to complete the exchange. Required: (a) What is the fair value of the equipment assuming the exchange has commercial substance? (1 mark) (b) Prepare the journal entry to record the exchange assuming the exchange has commercial substance. (5 marks) (c) Prepare the journal entry to record the exchange assuming the exchange lacks commercial substance. (4 marks)