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A machine cost $984000, has annual depreciation of $164000, and has accumulated depreciation of $779000 on December 31, 2020. On April 1.2021 when the machine

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A machine cost $984000, has annual depreciation of $164000, and has accumulated depreciation of $779000 on December 31, 2020. On April 1.2021 when the machine has a fair value of $225500, it is exchanged for a machine with a fair value of $1107000 and the proper amount of cash is paid. The exchange had commercial substance. The new machine should be recorded at $1086500. $1004500 $1107000 $881500

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