3. (5 points) Book \& Co, has a machine that cost $2,000,000 on January 1, 2016. This old machine had an estimated life of ten years with no salvage value, accumulated depreciation of $1,000,000 and has current fair value of $1,200,000. On December 31. 2020, Book exchanges the old machine plus $50,000 for a machine owned by Tomas with a fair value of $1,250,000. Tomas Inc. had purchased the machine for $1,800,000 and it has accumulated depreciation of $800,000. Instructions Prepare the journal entries for Book \& Co to record the exchange: 1. Assuming that the transaction had commercial substance 2. Assuming that the transaction lacked commercial substance