Question 3 (22 marks) Sun Company exchanged machinery with a fair value of $1,755,000, a recorded cost of $2,700,000 and accumulated depreciation of $1,350,000 with Moon Corporation for machinery Moon owns. The machinery has a fair value of $1,695,000, a recorded cost of $3,240,000, and accumulated depreciation of $1,782,000. Moon also gave Sun $60,000 in the exchange. Assume depreciation has already been updated to the date of exchange. Required: (a) Prepare journal entries on both companies' books assuming that the exchange had commercial substance. (b) Prepare journal entries on both companies' books assuming that the exchange lacked commercial substance. (12 marks) (10 marks)