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 | $18,000

Accumulated depreciation 9,000 | 10,000

Fair value of equipment 14,000 | 16,000

Cash given up 2,000

Please indicate whether an account is an asset (A), liability (L), or equity (E) for journal entries, adjusting entries, and closing entries.

Prepare the journal entries to record the exchange on the book of Santana Co. and Delaware Co. Assume that the exchange lacks commercial substance.