8. (5 points) This machinery was acquired by trading in used machinery. Facts concerning the trade-in are as follows.

Cost of machinery traded (old machine)$120,000

Accumulated depreciation to date of sale (old machine)50,000

Fair value of machinery traded (old machine)93,000

Cash received7,000

Fair value of machinery acquired (new machine)86,000

Record the journal entry for the above nonmonetary asset exchange for the following scenarios:

a. The transaction has commercial substance.

b. The transaction lacks commercial substance.