Reporting an Asset Exchange Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Equipment given up: Clark Keys Co. Inc. Equipment (original cost) $78,000 $91,000 Accumulated depreciation 26,000 31,200 46,800 62,400 (15,600) 15,600 Fair value Cash exchanged Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. Exchange has Commercial Substance Exchange Lacks Commercial Substance a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. a. b. Account Name To record acquisition of equipment. To record acquisition of equipment. > > > > > > > > > > Dr. Cr.