Nobuo Foods purchased a commercial grade soft-serve ice cream machine on September 30, 2022. Nobuo traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows (yens in thousands):

List price of new machine 20,750

Cash paid 13,800

Cost of old machine (4-year life, 1,500 salvage value) 17,500

Accumulated depreciation through 12/31/2021old machine using straight-line, 8,000

Secondhand fair value of old machine 6,700

Nobuos fiscal year ends on December 31, and Nobuo recorded depreciation on the old machine through December 31, 2021.

Prepare the journal entries to record this exchange (yens in thousands) on Nobuo Foods' books assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance.