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A machine had an original cost of $60,000. After $45,000 of depreciation was recorded, the machine was traded in on a new machine priced at
A machine had an original cost of $60,000. After $45,000 of depreciation was recorded, the machine was traded in on a new machine priced at $75,000. A $10,500 trade-in allowance was received on the old machine and the balance of $64,500 was paid in cash. This transaction has commercial substance. Prepare the general journal entry to record this trade-in.
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