5 . Cannondale Company purchased an electric wax melter on April 30 2014 , by trading in its old gas model and paying the balance in cash The following data relate to the purchase Prepare the journal entry to record the trade of equipment , Assume the transaction has commercial substance List price of new melter 515 800 Cash paid 0 000 Cost of old melter ( 5 - year life , $700 salvage value ) 1 200 Accumulated depreciation old melter ( straight - line ) 6300 Secondhand fair value of old melter 5.200 6 . Record the previous transaction assuming the transaction lacks commercial substance