Cowher Co. Hinson Co.
Equipment(cost) $450,000 $825,000
Accumulated depreciation 145,000 450,000
Fair market value of equipment 350,000 350,000

1. Cowher Co. and Hinson Co. traded the above equipment.The exchange has commercial substance.Make entries on the books of both companies.

2. Cowher Co. and Hinson Co. traded the above equipment.The exchange lacks commercial substance.Make entries on the books of both companies.