The Corey Company exchanged equipment costing $190,000 with accumulated depreciation of $45,000 for equipment owned by Salvo Corporation. The Salvo equipment cost $305,000 with accumulated depreciation of $105,000. The fair value of both pieces of equipment was $275,000.

Provide the necessary entries to record the transaction on both companies' books assuming:

(1)	The exchange lacks commercial substance.
(2)	The exchange has commercial substance.