On November 3, 2023, Gamez 2 Go Media exchanged an old computer for a new computer that had a list price of $190,000. The original cost of the old computer was $150,000 and related accumulated depreciation was $65,000 up to the date of the exchange. Gamez 2 Go Media received a trade-in allowance of $100,000 and paid the balance in cash.

Required

a. Record the exchange assuming the fair values are unknown.

b. Assume that the fair value of the new asset was $174,000. Record the exchange. 

Analysis Component:
What is the dollar value that will be used to depreciate the new computer in part (b)? Explain which GAAP helped you answer the question correctly.