Case 1: The exchange transaction has commercial substance. 5. Major Co. exchanged equipment with Minor, Inc....

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Case 1: The exchange transaction has commercial substance. 5. Major Co. exchanged equipment with Minor, Inc. Pertinent data are shown below: Major Co. 2,000,000 Equipment Accumulated depreciation Carrying amount Fair value Minor, Inc. 4,000,000 1,600,000 2,400,000 2,200,000 280,000 400,000 1,600,000 1,900,000 Cash paid by Major Co. to Minor, Inc. 280,000 Provide the journal entries in the books of Major and Minor. Case 2: Use the information in the fact pattern above but assume Major Co. cannot determine the fair value of the asset given up. The exchange transaction has commercial substance. Provide the journal entries in the books of Major Co. Case 3: The exchange transaction has no commercial substance. Provide the entries in the books of Major and Minor. Case 1: The exchange transaction has commercial substance. 5. Major Co. exchanged equipment with Minor, Inc. Pertinent data are shown below: Major Co. 2,000,000 Equipment Accumulated depreciation Carrying amount Fair value Minor, Inc. 4,000,000 1,600,000 2,400,000 2,200,000 280,000 400,000 1,600,000 1,900,000 Cash paid by Major Co. to Minor, Inc. 280,000 Provide the journal entries in the books of Major and Minor. Case 2: Use the information in the fact pattern above but assume Major Co. cannot determine the fair value of the asset given up. The exchange transaction has commercial substance. Provide the journal entries in the books of Major Co. Case 3: The exchange transaction has no commercial substance. Provide the entries in the books of Major and Minor.