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Company A gives an old Plant and Machinery ($1,500,000 cost, $950,000 accumulated depreciation) for a Digital Equipment. The fair value of the old Plant and

Company A gives an old Plant and Machinery ($1,500,000 cost, $950,000 accumulated depreciation) for a Digital Equipment. The fair value of the old Plant and Machinery is $250,000 (which is also deemed to be the fair value of the Digital Equipment). Required: Journal Entry to record the above exchange.

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