(123)_5 = 1×25 + 2×5 + 3 = 38 in decimal. For (x3)_y = 38, we need x×y + 3 = 38, so x×y = 35. Factor pairs of 35 with x < y (required for valid digit in base y) are (1,35) and (5,7), giving x = 1 or 5. The base y must exceed the highest digit (3), so y = 35 or 7 are both valid.