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Caleb Co. owns a machine that costs $42,800 with accumulated depreciation of $18,600. Caleb exchanges the machine for a newer model that has a market

Caleb Co. owns a machine that costs $42,800 with accumulated depreciation of $18,600. Caleb exchanges the machine for a newer model that has a market value of $53,000. 1. Record the exchange assuming Caleb paid $30,200 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $22,200 cash and the exchange has commercial substance.

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