You, a CPA, have two clients that are considering trading equipment with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Client A: Original Cost $100,000, Accumulated Depreciation 40,000, Fair Value 80,000, Cash received (paid) (20,000) Client B: Original cost 150,000, Accumulated Depreciation 80,000, Fair value 100,000 cash received (paid) 20,000

1. Record the trade-in on Client As books assuming the exchange has commercial substance.
2. Record the trade-in on Client As books assuming the exchange lacks commercial substance.
3. Record the entry on Client Bs books assuming the exchange has commercial substance.
4. Record the entry on Client Bs books assuming the exchange lacks substance.

I need journal entries