Problem - ABC Company exchanged machinery with an appraised value $1755000, a recorded cost of $2700000 and accumulated depreciation of $1350000 with bca corporation for machinery bca owns. The machinery has an appraised value of $ 1695000, a recorded cost of $3240000 ansd accumulated of $1782000. BCA also gave ABC $60000 in the exchange. Assume depreciation has already been updated.
a- Prepare the entries on both companies book assuming that the exchange had commercial substance.
b- Prepare the entries on both companies book assuming that the exchange lacked commercial substance.