New Ventures Construction Company purchased excavation equipment on March $15,2019.$

$6$ marks On June $19,2023,$ New Ventures exchanged this equipment for construction equipment

owned by Traditional Concepts Inc. Other information pertaining to the exchange follows:

Fair value of old excavating equipment owned by New Ventures on the

date of the exchange

Accumulated depreciation recorded by New Ventures on the old

excavation equipment

Cost of old excavation equipment to New Ventures

Fair value of equipment received by New Ventures in the exchange

Cash received by New Ventures in the exchange

Required:

Prepare the journal entry for New Ventures Corporation to record the exchange,

assuming the transaction is determined to have commercial substance. $(4$ marks$)$

Prepare the journal entry for New Ventures Corporation to record the exchange,

assuming the transaction is determined to lack commercial substance. $(2$ marks$)$