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 $80,000CASH/ 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