QUESTION $4.$

Dimarco Corporation exchanged old equipment that cost $$250,000($accumulated depreciation of $$140,000)$ for new equipment. The fair value of the new equipment is $$125,000.$ The fair value of the old equipment could not be reliably estimated.

Write the entry to record the acquisition of the new equipment under each independent scenario.

$4$a$.$ Transaction has commercial substance. Cash of $$25,000$ is paid by Dimarco.

$4$b$.$ Transaction lacks commercial substance. Cash of $$12,000$ is paid by Dimarco.

$4$c$.$ Transaction lacks commercial substance. Cash of $$5,000$ is received by Dimarco.

$4$d$.$ Transaction has commercial substance. No cash is involved.