Sutherland Limited exchanged equipment that it uses in its operations for similar equipment that is used in the operations of Richardson Limited. Sutherland also paid Richardson $1,500 in cash. The following information pertains to the exchange: Sutherland Richardson Equipment (cost) $40,000 $45,000 Accumulated depreciation 21,250 12,000 Fair value of equipment 20,000 23,000

a. Prepare the journal entry to record the exchange on the books of Sutherland, assuming the exchange is determined to have commercial substance.

b. Is the transaction considered monetary or nonmonetary?