$(5$ points$)$ This machinery was acquired by trading in used machinery. Facts concerning the trade$-$in

are as follows.

Cost of machinery traded $($old machine$)$ $$150,000$

Accumulated depreciation to date of sale $($old machine$)90,000$

Fair value of machinery traded $($old machine$)95,000$

Cash received $25,000$

Fair value of machinery acquired $($new machine$)70,000$

Record the journal entry for the above nonmonetary asset exchange for the following scenarios. Round to

the nearest dollar:

a$.$ The transaction has commercial substance.

b$.$ The transaction lacks commercial substance.