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.

List price of new melter		$26,386
Cash paid		16,700
Cost of old melter (5-year life, $1,169 salvage value)		18,704
Accumulated Depreciation-old melter (straight-line)		10,521
Secondhand fair value of old melter		8,684

Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Cannondale