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Caleb Co. owns a machine that had cost $48,800 with accumulated depreciation of $21,600. Caleb exchanges the machine for a newer model that has a

Caleb Co. owns a machine that had cost $48,800 with accumulated depreciation of $21,600. Caleb exchanges the machine for a newer model that has a market value of $57,000. 1. Record the exchange assuming Caleb paid $33,200 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $25,200 cash and the exchange has commercial substance.

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