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A machine cost $1224000, has annual depreciation of $204000, and has accumulated depreciation of $969000 on December 31, 2020. On April 1, 2021, when the
A machine cost $1224000, has annual depreciation of $204000, and has accumulated depreciation of $969000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $280500, it is exchanged for a machine with a fair value of $1377000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at $1096500. $1249500. $1351500. $1377000
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