Sage Company purchased an electric press on June $30,2025,$ by trading in its old gas model and paying the balance in cash. The following data relate to the purchase:

List price of new press

Cash paid

Cost of old press $(10-$year life, $$1,000$ residual value$)$

Accumulated depreciation$-$old press $($straight$-$line$)$

Second$-$hand market value of old press

$$24,600$

$11,500$

$34,700$

$27,400$

$6,000$

Prepare the journal entries necessary to record this exchange, assuming that the exchange $($a$)$ has commercial substance, and $($b$)$ lacks commercial substance. Sage's fiscal year ends on December $31,$ and depreciation has been recorded through December $31,2024.$