Exercise L: Tidwell Company sold the following two machines in 2010: Cost Purchase date Useful life Salvage value Depreciation method Date sold Sales Price Machine A $68,000 7/1/06 8 years $4,000 Straight-line 7/1/10 $30,000 Machine B $80,000 1/1/07 5 years $4,000 Straight-line 8/1/10 $16,000 Instructions 1) Journalize all entries required to update depreciation and record the sales of the two assets in 2010. The company has recorded depreciation on the machine through December 31, 2009. 2) Assume that the company exchanged an old machine C (cost $100,000 less $60,000 accumulated depreciation) plus $7,000 cash for a new machine D. The old machine C had a fair market value of $36,000. Prepare the entry to record the exchange of assets by the company.