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5 points A machine cost $40,000 and has accumulated depreciation of $22,000 on December 31, 2014. At that time, the machine had a fair value

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5 points A machine cost $40,000 and has accumulated depreciation of $22,000 on December 31, 2014. At that time, the machine had a fair value of $16,000 and has been exchanged for a similar machine with a fair value of $48,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Requirement: Prepare the necessary journal entry to record the above exchange

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