Practice Exercise 10-4 Larkspur Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Larkspur traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer $25,315 Cash paid 16,836 Cost of old machine (4-year life, $1,830 salvage value) 21,350 Accumulated depreciation-old machine (straight-line) 9,760 8,174 Secondhand fair value of old machine Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. fiscal year ends on December 31, and Larkspur recorded depreciation on the old machine through December 31, 2016. (Credit account titles are automatically indented when amount is entered. not indent manually.) Debit No. Account Titles and Explanation Credit a) Exchange has commercial substance: (To record current depreciation)