Textile manufacturerSheridanCorp. exchanges robotic equipment with an original cost of $20,000and a carrying amount of $11,800with the equipment rental companyGrouperCorp. The equipment that is received in exchange fromGrouperCorp. has an original cost of $35,000and a carrying amount of $16,500, performs different functions, and has a fair value of $22,200. Both companies are 100% owned by the same individual. Because they are closely held companies, they both follow ASPE.

Prepare the journal entries for both companies to record the exchange