A machine has a new control board installed for $155,000 which will increase efficiency significantly. Originally, the machine and control board were not set up as separate assets. Management confidently estimates that the cost of the control board is one-third of the overall cost of the machine. The machines original cost was $420,000 and it is 40% depreciated.

The journal entry necessary to record this transaction would include:

		A Dr. to Accumulated Depreciation-Machine $56,000.
		A Cr to PPE-Machine $168,000
		A Dr to Loss on Control Board disposal $56,000
		A Cr to Gain on Control Board disposal $84,000