Example - Nonmonetary exchange Delco Corporation traded in a machine for a newer model. The old machine had a book value of $50.000 (original cost $80,000) and its fair value was $90.000. Delco paid $10,000 to complete the exchange. Required: Prepare the journal entry for this transaction. GL Account Debit Credit Prepare the journal entry assuming that the fair value of the machine is $40.000. GL Account Debit Credit