Question: Cable Corp. has entered into a transaction with Land Corp. Cable Corp will give its equipment to Land Corp. in exchange for Lands equipment. Cable

Cable Corp. has entered into a transaction with Land Corp. Cable Corp will give its equipment to Land Corp. in exchange for Lands equipment. Cable Corp will also pay Land Corp $30,000 cash. Cable Corps equipment originally cost $160,000 when it was purchased 2 years ago and currently has $50,000 of accumulated depreciation and an estimated fair value of $122,000. The fair value of Land Corps equipment is determined to be $152,000.

Required:

Provide the journal entry to record this transaction on Cable Corp. books assuming:

The exchange has commercial substance.
The exchange lacks commercial substance.

You will have a total of 2 entries. SHOW YOUR WORK & clearly label your answers as #1 and #2.

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