Sage Hill Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Sage Hill traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer $17,015 Cash paid 11,316 Cost of old machine (4-year life, $1,230 salvage value) 14,350 Accumulated depreciation-old machine (straight-line) 6,560 Secondhand fair value of old machine 5,494 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sage Hill's fiscal year ends on December 31, and Sage Hill recorded depreciation on the old machine through September 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)