Teal Mountain Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Teal Mountain traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: . . List price of new freezer Cash paid Cost of old machine (4-year life, $1,380 salvage value) Accumulated depreciation-old machine (straight-line) Secondhand fair value of old machine $19,090 12,696 16,100 7,360 6,164 . Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Teal Mountain's fiscal year ends on December 31, and Teal Mountain recorded depreciation on the old machine through September 30, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation (a) Exchange has commercial substance: (To record current depreciation) (To record exchange of the machine) (b) Exchange lacks commercial substance: (To record current depreciation) (To record exchange of the machine)