The production manager of Culver Corporation wants to acquire a different brand of machine by exchanging the machine that it currently uses in operations for the brand of equipment that others in the industry are using. The brand being used by other companies is more comfortable for the operators because it has different attachments that allow the operators to adjust the controls for a variety of arm and hand positions. The production manager has received the following offers from other companies: 1. Secord Corp. offered to give Culver a similar machine plus $24,610 in exchange for Culver's machine. 2. Bateman Corp. offered a straight exchange for a similar machine with essentially the same value in use. 3. Shripad Corp. offered to exchange a similar machine with the same value in use, but wanted $8,560 cash in addition to Culver's machine. Assume that the exchange is nonmonetary and lacks commercial substance. 4. The production manager has also contacted Ansong Corporation, a dealer in machines. To obtain a new machine from Ansong, Culver would have to pay $99,510 and also trade in its old machine. Culver's equipment has a cost of $171,200, a net book value of $117,700, and a fair value of $98,440. The following table shows the information needed to record the machine exchange between the companies: Secord Bateman Shripad Ansong Machine cost $128,400 $157,290 $171,200 $139,100 Accumulated depreciation-machinery 48,150 75,970 80,250 -0- Fair value 73,830 98,440 107,000 197,950 Part 2 There will be scenarios or situations where different entries would be appropriate. Prepare the journal entries for transactions 2 and 3 assuming that they have commercial substance for Bateman Company and Shripad Company respectively. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Transaction 2: Culver Corporation Account Titles and Explanation Debit Credit Bateman Company Account Titles and Explanation Debit Credit Transaction 3: Transaction 3: Culver Corporation Account Titles and Explanation Debit Credit Shripad Company Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts