QUESTION 9 DEF Exchange of Fixed Assets ABC Company exchanged equipment used in its manufacturing operations plus $2,250 in cash for similar equipment used in the operations of DEF Company. This exchange lacks commercial substance. The following information pertains to the exchange. ABC Equipment cost $28,000 $37,000 Accumulated depreciation 10,000 29,000 Fair value of equipment 12,750 15,000 Cash paid by ABC 2,250 1. What is the amount of gain or loss realized and recognized for each company? 2. Record this exchange for ABC and DEF companies. ABC Amount Realized Amount Recognized Journal entry: Gain or Loss Gain or Loss DEE: Amount Realized Amount Recognized Journal entry: Gain or Loss Gain or Loss