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Exercise 2-Nonmonetary exchange. (22 points) Beeman Company exchanged machinery with a fair value of $4,680,000,...

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Exercise 2-Nonmonetary exchange. (22 points) Beeman Company exchanged machinery with a fair value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns. The machinery that Lacey owns has a fair value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 of cash in the exchange. Assume depreciation has already been updated. Instructions (a) Prepare the entries on both companies' books assuming that the exchange had commercial substance. Prepare the entries on both companies' books assuming that the exchange lacked commercial substance (b)

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