Santana Company exchanged equipment used in its manufacturing operations plus $2,000 in cash for similar equipment used in the operations of Delaware Company. The following information pertains to the exchange.

	Santana Co.	Delaware Co.
Equipment (cost)	$28,000	$17,000
Accumulated depreciation	19,000	10,000
Fair value of equipment	13,000	15,000
Cash given up	2,000

1. Prepare the journal entries to record the exchange on the book of Delaware Co. Assume that the exchange lacks commercial substance.
2. Prepare the journal entries to record the exchange on the book of Delaware Co. Assume that the exchange has commercial substance.