Assuming that Sunland's fiscal year ends on December 31 and depreciation has been recorded through December 31, 2019, prepare the journal entries that are necessary to record this exchange. (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.) Account Titles and Explanation Debit Credit (To record depreciation expense to date of exchange) (To record equipment exchange) Sunland Ltd. purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: $15,600 8,600 List price of new melter Cash paid Cost of old melter (5-year life, $680 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market 14,180 8,100 6,440 Sandhill Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Monty Limited. Sandhill also paid Monty $2,800 in cash. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Sandhill $50,000 31,500 26,000 Monty $55,500 20,000 28,800 Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance. (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.) Sandhill Limited Account Titles and Explanation Debit Credit Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined not to have commercial substance. (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 for the amounts.) Sandhill Limited Account Titles and Explanation Debit Credit Monty Limited Account Titles and Explanation Debit Credit