Sunland Company exchanged machinery with an appraised value of $3,538,500, a recorded cost of $5,435,000 and accumulated depreciation of $2,717,500 with Jennifer Corporation for machinery Jennifer owns. The machinery has an appraised value of $3,358,500, a recorded cost of $6,430,000, and accumulated depreciation of $3,536,500. Jennifer also gave Sunland $180,000 in the exchange. Assume depreciation has already been updated.

Prepare the entries on both companies' books assuming that the exchange lacked commercial substance.