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Samuel Company exchanged land and cash of $6,500 for equipment.The land had a book value of $45,000 and a fair value of $34,000. Required: (a)

Samuel Company exchanged land and cash of $6,500 for equipment.The land had a book value of $45,000 and a fair value of $34,000.

Required:

(a) Prepare the journal entry to record the exchange, assuming this transaction has commercial

substance.

(b) Prepare the journal entry to record the exchange, assuming this transaction lacks commercial

substance.

Please reply with explanation.

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