Current Attempt in Progress

Riverbed Company purchased an electric press on June $30,2025,$ by trading in its old gas model and paying the balance in cash. The

following data relate to the purchase:

List price of new press

$$24,600$

Cash paid

$12,900$

Cost of old press $(10-$year life, $$1,000$ residual value$)$

$34,800$

Accumulated depreciation$-$old press $($straight$-$line$)$

$27,200$

Second$-$hand market value of old press

$7,100$

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

commercial substance. Riverbed's fiscal year ends on December $31,$ and depreciation has been recorded through December $31,2024.$

$($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for

the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

No$.$ Account Titles and Explanation

Debit

Credit

$($a$)$ Exchange has commercial substance:

$($To record current depreciation.$)$

$($To record exchange of the equipment.$)$

$($b$)$ Exchange lacks commercial substance:

$($To record current depreciation.$)$

$($To record exchange of the equipment.$)$