Asset Exchange Apple Inc owns a manufacturing machine in Ipad Production Facility that costs $38,400 with accumulated depreciation of $20,400. They exchange the machine with Samsung (so they can build their Galaxy Tablet) for a newer model that has a market value of $48,000.

1. Provide the General Journal entries recording the exchange assuming Apple paid $32,000 cash and the exchange has commercial substance.

2. Provide the General Journal entries recording the exchange assuming Apple pays $24,000 cash and the exchange lacks commercial substance.