Whispering Company purchased an electric wax melter on April 30, 2020, 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 $18,644

Cash paid 11,800 Cost of old melter (5-year life, $826 salvage value) 13,216

Accumulated Depreciation-old melter (straight-line) 7,434

Secondhand fair value of old melter 6,136

Prepare the journal entries necessary to record this exchange lacks commercial substance.

Depreciation exp	826
A/D		826
(record current depreciation)
A/D	8260
Equipment	??
Cash		11800
Equipment		13216
???		???
(record the exchange)