A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of $150,000 on December 31, 2020. On April 1, 2021, when the machine has a fair value of $120,000, it is exchanged for a similar machine with a fair value of $360,000 and the proper amount of cash is paid. The exchange lacked commercial substance.

Below match the correct dollar amount with the correct debit or credit to record nonmonetary exchange transaction.

If you believe that an account listed is not relevant to the transaction, place the number 0 next to that account.

Note that you do not have to use every number provided.

Credit Old Machinery Answer 1Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Debit Accumulated Depreciation Answer 2Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Debit Cash Answer 3Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Credit Cash Answer 4Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Credit Gain Answer 5Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Debit Loss Answer 6Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000 Debit New Machinery Answer 7Choose...$30,000$360,000$45,000$240,000$75,000$325,000$165,000$0$15,000$300,000$120,000