Exchange or trade$-$in of assets.

a$.$ On December $31,$ a drill press, which had a cost of $$60,000$ and had accumulated depreciation of $$48,000,$ was traded in for a new drill press with a fair market value of $$75,000.$ The old drill press and $$65,000$ in cash were given for the new drill press.

b$.$ On December $31,$ the old drill press in $($a$)$ and $$60,000$ in cash were given for the new drill press.

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DATE ACCOUNT TITLE

$20--$

Dec. $31$

$\backslash$table$[[,$Accumulated Depreciation$-$Drill Press $($new$),$I$],[,$Loss on Exchange of Drill Press,$],[,$Drill Press $($old$),],[,$Cash.,$],[,,],[31,$Drill Press $($new$),],[,$Accumulated Depreciation$-$Drill Press $($new$),8],[,$Loss on Exchange of Drill Press,$],[,$Accumulated Depreciation$-$Drill Press $($old$),$~~