Waterway Company purchased an electric press on June 30,2025 , by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new press $24,400 Cash paid 12,000 Cost of old press (10-year life, $1,000 residual value) 34,500 Accumulated depreciation-old press (straight-line) 27,300 Second-hand market value of old press 6,400 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Waterway's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024.