Sparta Company exchanged machinery with an appraised value of $4,680,000 a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Delphi Corporation for machinery Delphi owns. The machinery has an appraised value of $4,520,000 a recorded cost of $8,640,000 and accumulated depreciation of $4,752,000. Delphi also gave Sparta $160,000 in the exchange.

A. Prepare the entries on both companies' books assuming that the exchange had commercial substance. (Round all computations to the nearest dollar.)

B. Prepare the entries on both companies' books assuming that the exchange lacked Commercial substance. (Round all computations to the nearest dollar.)