24) Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same type of equipment and received $12,000 cash. The old dust scrubber cost $76,200 and had a book value of $54,500. The new dust scrubber had a fair value of $58,500.

Required:

A) Prepare the journal entry to record the exchange. Assume the exchange has commercial substance.

B) Prepare the journal entry to record the exchange. Assume the exchange has no commercial substance.