Traverse Corporation traded a piece of equipment with another company in exchange for another piece of equipment. Details of the exchange are as follows: (Click the icon to view the details.) Requirements a. Record the transaction for Traverse, assuming the exchange has no commercial substance. b. Record the transaction for Traverse, assuming the exchange has commercial substance. c. Explain the rationale for the accounting treatment for exchanges without commercial substance. Requirement a. Record the transaction for Traverse, assuming the exchange has no commercial substance. (Record debits first, then credits. Explanations are not required.) Date (a) Accounts Debit Credit Requirement b. Record the transaction for Traverse, assuming the exchange has commercial substance. (Record debits first, then credits. Explanations are not required.) Date (b) Accounts Debit Credit Requirement c. Explain the rationale for the accounting treatment for exchanges without commercial substance. The rationale for the accounting treatment for exchanges without commercial substance is that such exchanges Data table Historical cost of old asset 300,000 Accumulated depreciation of old asset 200,000 Fair market value of old asset Fair market value of new asset Cash paid 137,500 192,500 55,000 Print Done in a culmination of the earnings process. Consequently, are recognized on the exchange