Exercise 10-18 Your answer is partially correct. Try again. Novak Company purchased an electric wax melter on April 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. $22,752 14,400 16,128 9,072 7,488 List price of new melter Cash paid Cost of old melter (5-year life, $1,008 salvage value) Accumulated Depreciation-old melter (straight-line) Secondhand fair value of old melter Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Novak's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (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.) Debit Credit No. Account Titles and Explanation Depreciation Expense 1008 Accumulated Depreciation-Equipment 1008 To record current depreciation.) Equipment Accumulated Depreciation-Equipment 21,888 10,080 Gain on Disposal of Equipment 1440 Equipment 16,128 Cash 14,400 (To record exchange of the equipment.) (b) Exchange lacks commercial substance Depreciation Expense 1008 Accumulated Depreciation-Equipment (To record current depreciation.) Equipment Accumulated Depreciation-Equipment 1008 20,449 10,080 16,128 Equipment Cash 14,400 No Entry 0 (To record exchange of the equipment.) Click if you would like to Show Work for this question: Open Show Work