Von$-$monetary exchange $(14$ 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.

Required

a$)$ Prepare the entries on both companies' books assuming that the transaction has commercial substance. $(10$ marks$)$

b$)$ Prepare the entries on both companies' books assuming that the transaction lacks commercial substance. $(4$ marks$)$