CapitalLtd. exchanged equipment used in its manufacturing operations for equipment used in the operations of Capital Ltd. The following information pertains to the exchange:

Capital Ltd.Equipment (cost)$84,000$84,000

Accumulated depreciation 46,10040,500

Fair value of old equipment 42,00042,800

Cash given up 800

Both companies agreed that the exchange had commercial substance for both companies. Enter journal entries to record the asset exchange on the books of both companies