(4 points) This machinery was acquired by trading in used machinery. Facts concerning the trade- in are as follows. Cost of machinery traded (old machine) $200,000 Accumulated depreciation to date of sale (old machine) 60,000 Fair value of machinery traded (old machine) 102,000 Cash received 10,000 Fair value of machinery acquired (new machine) 92,000 Record the journal entry for the above nonmonetary asset exchange for the following scenarios: a. The transaction has commercial substance. b. The transaction lacks commercial substance. 5. (4 points) Affliction Company uses LIFO for inventory costing purposes, and therefore uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, and G. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Estimated selling price $130 $98 $95 $85 Cost 100 80 60 80 Replacement cost 110 65 70 50 Estimated selling expense 25 25 20 20 Normal profit 30 18 25 27

4. (4 points) This machinery was acquired by trading in used machinery. Facts concerning the tradein are as follows. Record the journal entry for the above nonmonetary asset exchange for the following scenarios: a. The transaction has commercial substance. b. The transaction lacks commercial substance. 5. (4 points) Affliction Company uses LIFO for inventory costing purposes, and therefore uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2014, consists of products D, E, F, and G. Relevant per-unit data for these products appear below