Question 3 Sunland Company exchanged equipment used in its manufacturing operations plus $3,840 in cash for similar equipment used in the operations of Coronado Company. The following information pertains to the exchange. Sunland Co. Coronado Co. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up $35,840 24,320 16,000 3,840 $35,840 12,800 19,840 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance (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.) Account Titles and Explanation Sunland Company: Debit Credit Coronado Company