Alatorre Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Alatorre Corporation gave the machine plus $330 to Mills Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

		Alatorre Corp. (Old Machine)		Mills Co. (New Machine)
Machine cost		$299		$278
Accumulated depreciation		144