The following transactions occurred in fiscal 2021:

Transaction 1: Synthesize Inc. exchanged machinery with Energize Corp.

	Synthesize's machinery	Energize's machinery
Cost	500,000	620,000
Accumulated depreciation	200,000	500,000
Fair value	350,000	Not known

Transaction 2: Synthesize Inc. purchased equipment by signing a 5 year non-interest bearing note payable for $200,000. The implicit rate of interest was 5%.

Transaction 3: Synthesize received a government grant of $10,000 to help purchase the equipment.

Required:

1. Assuming the machinery exchange has commercial substance, prepare the required journal entries for the exchange for Energize.
2. Assuming the machinery exchange does NOT have commercial substance, prepare the required journal entries for the exchange for Synthesize.
3. Prepare the required journal entry to record the purchase of the equipment purchased by the noninterest bearing note.
4. Prepare the required journal entries to record the government grant using both the gross method and the net method.

This is all the information in assignment .