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		$20,382
Cash paid		12,900
Cost of old melter (5-year life, $903 salvage value)		14,448
Accumulated Depreciation-old melter (straight-line)		8,127
Secondhand fair value of old melter		6,708

Exchange lacks commercial substance:

a) record current depreciation

b) Record exchange of the machine