On December $5$ Crater Company traded a four year old machine for a similar new machine. The old machine had a recorded cost of $$8,000$ and accumulated depreciation $($updated to the date of trade$)$ of $$6,000.$ The new machine has a list price of $$12,000$ and the old machine has a fair value of $$2,500.$ Cash of $$9,500$ was paid to complete the transaction. This exchange has commercial substance. Give the necessary journal entry.