Company A exchanges machinery with Company
B. In addition, Company A gave $10,000 to Company B as part of the exchange.
Company A's equipment had a book value of $20,000 and a fair value of $8,000.
Company B's equipment had a book value of $25,000 and a fair value of $15,000.
Provide the entry on Company A's books assuming that"
i) The transaction has commercial substance.
ii) The transaction has no commercial substance (use the book value method).

Question

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The Answer of Company A exchanges machinery with Company
B. In addition, Company A gave $10,000 to Company B as part of the exchange.
Company A's equipment had a book value of $20,000 and a fair value of $8,000.
Company B's equipment had a book value of $25,000 and a fair value of $15,000.
Provide the entry on Company A's books assuming that"
i) The transaction has commercial substance.
ii) The transaction has no commercial substance (use the book value method).

Company a Exchanges Machinery with Company