Sarasota Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Ivanhoe Ltd. The following information pertains to the exchange: Sarasota Corp. Ivanhoe Ltd. Equipment (cost) $84,300 $84,300 Accumulated depreciation 46,700 40,300 Fair value of old equipment 41,600 43,600 Cash given up 2,000 Both companies agreed that the exchange did not have commercial substance. Prepare the necessary journal entries to record the asset exchange on the books of both companies.