Santana Company exchanged equipment used in its manufacturing operations plus $R$$$2,000$ in

cash for similar equipment used in the operations of Delaware Company. The following

information pertains to the exchange.

Required:

Prepare the journal entries to record the exchange on the books of both companies. Assume that

the exchange has commercial substance.

What accounting treatment is normally given to the following items in accounting for plant

assets?

$($a$)$ Additions. $($b$)$ Major repairs. $($c$)$ Improvements. $($d$)$ Replacements.