Springtime Company manufactures outdoor storage sheds. One production machine that has been used over the past fewyears needs replacement as it highly inefficient to operate and requires frequent repairs. The machine was initiallypurchased on January $1,2019$ for $$185,000.$ At that time, it was estimated to be sold for $$60,000$ at the end of its useful lifeof $8$ years.On May $31,2022$ the Controller met with a supplier of a new machine that is faster, more reliable, and uses less energy. Useof this new machine would result in a significant difference in future cash flows due to substantial cost savings associatedwith operating efficiencies. The list price of the new machine is $$200,000$ & the supplier has agreed to provide a trade$-$inallowance of $$177,000$ for the old machine with $$23,000$ to be paid in cash.Springtime uses the Double$-$Declining$-$Balance method of depreciating capital assets.Calculate the net book value of the old machine as of the last reporting date, December $31,2021$How would you classify the transaction from the perspective of Springtime Company?Is the transaction Monetary? Non$-$monetary with commercial substance? Or non$-$monetary with no commercial substance?Provide a full explanation with any calculations you think are necessary to support your answer.Prepare all necessary journal entries needed on May $31,2022$ to account for the trade$-$in of the old machine for the new machine.Hint: Recall that a "trade$-$in$"$ is a type of capital disposal.Would your answer change if the new machine would NOT allow Springtime Company to realize substantial cost savingsassociated with operating efficiencies?Explain how the accounting for the trade$-$in would be different.