PROBLEM #2 (Recommended Time Allocation: 14 Minutes; 8 Marks) Athens Inc. exchanged machinery with an appraised value of $ 1,170,000, a recorded cost of $1,800,000 and accumulated depreciation of $ 900,000, for machinery that Sparta Corp. owns. Sparta's machinery has an appraised value of $ 1,140,000, a recorded cost of $ 2,160,000, and accumulated depreciation of $ 1,188,000. Sparta also gave Athens $ 30,000 in the exchange. Assume depreciation has been updated to the date of exchange. Instructions a) Prepare the entry on Athens' books assuming that the transaction has commercial substance. (4 Marks) b) Prepare the entry on Sparta's books assuming that the transaction lacks commercial substance. (4 Marks) Format B I U DESCRIPTION DEBIT CREDIT