c. Exchange of Plant Assets - At a "Gain," But Gain Not Recognized: On 9/10 Year 6 ECU Corporation disposes of old MACHINERY & EQUIPMENT that cost $120,000/ with ACCUMULATED DEPRECIATION of $72,000 and / pays $80,000 CASH / in exchange for new MACHINERY & EQUIPMENT that cost $160,000. However, the new MACHINERY & EQUIPMENT must be debited for whatever amount will balance the entry after all the other accounts have been recorded, since a GAIN is not recognized on an "exchange." Phrase Account Category Affect Dr. or Cr. 1st: AL SE RE contra Dr Cr 2nd: AL SE RE contra Dr Cr 3rd: AL SE RE contra Dr Cr 4th: AL SE RE contra Dr Cr Date Accounts Debit + + + + Credit