Presented below are two independent situations:
(a) Waner Company exchanged an old machine (cost $100,000 less $60,000 accumulated depreciation) plus $7,000 cash for a new machine. The old machine had a fair market value of $36,000. Prepare the entry to record the exchange of assets by Waner Company.

(b) Fisher Company trades old equipment (cost $90,000 less $54,000 accumulated deprecia-tion) for new equipment. Fisher paid $36,000 cash in the trade. The old equipment that was traded had a fair market value of $54,000. Prepare the entry to record the exchange of assets by Fisher Company. The transaction has commercial substance.