Reporting an Asset Exchange Clarksten Co. and Kay Inc. exchange equipment. Information related to this exchange for both companies follows. Clarksten Co. Kay Inc. Equipment given up: Equipment (original cost) Accumulated depreciation Fair value Cash exchanged $24,000 $28,000 8,000 9,600 14,400 19,200 (4,800) 4,800 Answer the following questions, rounding your answers to the nearest whole number. a. Record the exchange for Clarksten Co. assuming the transaction has commercial substance. b. Record the exchange for Kay Inc. assuming the transaction has commercial substance. c. Record the exchange for Clarksten Co. assuming the transaction lacks commercial substance. d. Record the exchange for Kay Inc. assuming the transaction lacks commercial substance. Note: If a line in a journal entry isn't required for a transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) Exchange has commercial substance Exchange lacks commercial substance a. Dr. Cr. x 0 8,000 0 Account Name Equipment (new) Accumulated Depreciation Cash Equipment (old) Cash X x 0 0 0 X 0 0 x b. Account Name Cr. Dr. 4,800 Cash 0 X 0 9,600 0 Equipment (new) Accumulated Depreciation Gain on Asset Exchange Equipment (old) 0 X 0 28,000 Exchange has commercial substance Exchange lacks commercial substance c. Dr. Cr. X 0 8000 0 Account Name Equipment (new) Accumulated Depreciation Cash Equipment (old) Cash 0 x 0 0 24000 0 4800 d. Account Name Dr. Cr. Cash 4800 0 X 0 9600 0 Equipment (new) Accumulated Depreciation Equipment (old) Gain on Asset Exchange 0 28000 0 X