Determine the gain or loss to be recognized on the exchange for Kingston assuming that the exchange has commercial substance after bringing the accumulated depreciation up to the date of the transaction.

The gain/loss on exchange is $___________

ReqB)

(Record debits first, then credits. Exclude explanations from any journal entries.)

1. Prepare the journal entry to record the depreciation expense from January 1 through July 1, 2018.

2. Prepare the journal entry to record the exchange assuming that the exchange has commercial substance.

ReqC)

Prepare the journal entry for Kingston to record the exchange, if the exchange lacked commercial substance. (Record debits first, then credits. Exclude explanations from any journal entries.)

You have been asked to account for a plant asset exchange on the books of the Macy Video Game Company. On January 1, 2012, Macy acquired a plastic extruding machine at a cost of $130,000. This machine had an original estimated useful life of 10 years and a scrap value of $10,000. The machine was depreciated using the straight-line method. On August 1, 2018, Macy exchanged the old machine for a similar asset with a market value of $95,400. Macy also received cash of $10,600. The estimated fair value of the old machine is equal to $106,000. The old machine was depreciated up to December 31, 2017. Read the requirements. Requirement a. Determine the gain or loss to be recognized on the exchange for Macy assuming that the exchange has commercial substance after bringing the accumulated depreciation up to the date of the transaction. The gain/loss on exchange is $