52.

Machinery acquired at a cost of $90,000 and on which there is accumulated depreciation of $50,000 (includes depreciation for the current year-to-date) is exchanged for similar machinery. For financial reporting purposes, present journal entries to record the disposition of the old machinery and the acquisition of new machinery under each of the following assumptions (for each Journal Entry, omit the step of providing a brief explanation):

(a)	Price of new, $115,000; trade-in allowance on old, $4,000; balance paid in cash.
(b)	Price of new, $115,000; trade-in allowance on old, $44,000; balance paid in cash (NOTE: assume the exchange lacks Commercial Substance).

JOURNAL Date Post. DR CR
(a)
(b)