Marigold Company purchased an electric wax melter on April $30,2025,$ by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.

List price of new melter $$17,100$

Cash paid $10,800$

Cost of old melter $(5-$year life, $$700$ salvage value$)12,100$

Accumulated depreciation$$old melter $($straight$-$line$)6,800$

Secondhand fair value of old melter $5,600$Prepare the journal entries necessary to record this evchange, assuming that the exchange $($a$)$ has commercial subatance, and $($b$)$ lacks

commarcial substance. Marigold's fiscal ycar ends on Dacember $31,$ and depreciation has besn recorded through Decamber $31,2024.$

$($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$)$ Exchanve hos commercial substance:

Degeredetan Exparse

Accumulatad Dagrselatian $-$ Equlement

$($To record currant depreciation.$)$

Accumulatad Degrosiatan $-$ Equlgment

Cash

$[$ Galn on Dbgocial of Equlement $1$