Splish Brothers Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Splish Brothers traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer $18,260 Cash paid 12,144 Cost of old machine (4-year life, $1,320 salvage value) 15,400 Accumulated depreciationold machine (straight-line) 7,040 Secondhand fair value of old machine 5,896 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Splish Brotherss fiscal year ends on December 31, and Splish Brothers recorded depreciation on the old machine through September 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)