Caleb Co. owns a machine that costs $42,400 with accumulated depreciation of $18,400. Caleb exchanges the machine

Question:

Caleb Co. owns a machine that costs $42,400 with accumulated depreciation of $18,400. Caleb exchanges the machine for a newer model that has a market value of $52,000.
(1) Record the exchange assuming Caleb paid $30,000 cash and the exchange has commercial substance.
(2) Record the exchange assuming Caleb pays $22,000 cash and the exchange lacks commercial substance.