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Sparta Company exchanged machinery with an appraised value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Delphi Corporation for machinery Delphi owns. The machinery has an appraised value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. Delphi also gave Sparta $160,000 in the exchange
Question A. Journalize the entries on both companies' books assuming that the exchange had commercial substance.
Question B. Journalize the entries on both companies' books assuming that the exchange lacked Commercial substance.
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