Prepare the journal entries necessary to record the exchange, assuming (a) has commercial substance, and (b) lacks commercial substance.

*Practice Exercise 10-4 Marin Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Marin traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer Cash paid Cost of old machine (4-year life, $1,170 salvage value) Accumulated depreciation-old machine (straight-line) Secondhand fair value of old machine $16,185 10,764 13,650 6,240 5,226 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Marin's fiscal year ends on December 31, and Marin recorded depreciation on the old machine through December 31, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)