You have two clients that are considering trading machinery 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			Client B
Original cost		$102,700			$160,000
Accumulated depreciation		44,000			83,300
Fair value		87,100			115,500
Cash received (paid)		(28,400)			28,400
			**Record the entry on Client Bs books assuming the exchange lacks commercial substance.