$($Chapter $23$: Related Party Transactions$)$ Verez Limited owns $90\%$ of Consior Inc. During

$2023,$ Verez acquired a machine from Consior in exchange for its own used machine. Both

companies are in the tool$-$making business. The agreed exchange amount is $$1,000,$ although the

transaction is nonmonetary. Consior has an original cost of $$6,000$ and carries its machine on its

books at a carrying amount of $$700,$ whereas Verez has an original cost of $$7,000$ and carries its

machine on its books at a carrying amount of $$900.$ Neither company has a balance in the

Contributed Surplus account relating to previous related party transactions. Both Verez and

Consior follow ASPE. The transaction is NOT in the normal course of operations for either

company, and the transaction does NOT commercial substance. Which of the following journal

entries would be the appropriate to record the exchange for Verez?

a$)$

Machinery $($new$)$

Accumulated Depreciation$-$Machinery ${?}^1$

Retained Earnings

Machinery $($old$).$

b$)$

Machinery $($new$)$

Accumulated Depreciation$-..........................$

Gain on Disposal of Machinery

Machinery $($old$).$

c$)$

Machinery $($new$)$

Accumulated Depreciation$-$Machiner................

Machinery $($old$).$

d$)$ No entries, only disclosure in notes to the financial statements

$900$

$6,100$