Textile manufacturer Fibreright Corp. exchanges robotic equipment with an original cost of $20,000 and a carrying amount of $11,000 with the equipment rental company Frederick Corp. The equipment that is received in exchange from Frederick Corp. has an original cost of $35,000 and a carrying amount of $15,100, performs different functions, and has a fair value of $20,800. Both companies are 100% owned by the same individual. Because they are closely held companies, they both follow ASPE. Discuss how this transaction should be measured and prepare the journal entries for both companies to record the exchange. Use the decision tree in Illustration 23-5 to explain the reasoning for your answer.