Accumulated Depreciation-Machinery 9380 Gain on Disposal of Machinery melter old Cash (To record exchange of the equipment.) Exchange lacks commercial substance: depreciation expense 938 Accumulated Depreciation-Equipment 938 (To record current depreciation.) Equipment Accumulated Depreciation-Equipment Gain on Disposal of Equipment Equipment cash (To record exchange of the equipment.) Exercise 10-18 Wildhorse Company purchased an electric wax melter on April 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $21,172 Cash paid 13,400 Cost of old melter (5-year life, $938 salvage value) 15,008 Accumulated Depreciation-old melter (straight-line) 8,442 Secondhand fair value of old melter 6,968 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Wildhorse's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (Credit account titles are automatically indented when amount entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) entered. Do not indent manually. If no No. Account Titles and Explanation Debit Credit (a) Exchange has commercial substance: Depreciation Expense 938 Accumulated Depreciation-Equipment 938 (To record current depreciation.) 20234 melter Accumulated Depreciation-Machinery 9380 Gain on Disposal of Machinery melter old