Question #3 (nonmonetary exchanges) The Company purchased a new machines by trading in their old machine (purchased January 1, Year 1) and paying the balance in cash on April 30, Year 4. The following information relates to this exchange/purchase. List price of new machine $15,800 Cash paid $10,000 Cost of Old Machine (5 year life; $700 salvage value) $11,200 Accumulated Depreciation on old machine (straight line) $ 6,300 Secondhand fair value of the old machine $ 5,200 Record the journal entries to record this exchange/purchase, assuming the exchange (a) Has commercial substance (b) Does not have commercial substance