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		$19,276
Cash paid		12,200
Cost of old melter (5-year life, $854 salvage value)		13,664
Accumulated Depreciation-old melter (straight-line)		7,686
Secondhand fair value of old melter		6,344

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