IN 1 Una 1 NON-MONETARY TRANSACTIONS Tree-for-Me Company manufactures artificial Christmas trees. One production machine that has been used over the past few years needs replacement as it highly inefficient to operate and requires frequent repairs. The machine was initially purchased on January 1, 2017 for $185.000 At that time, it was estimated to be sold for $60.000 at the end of its useful life of 8 years On May 31, 2020 the Controller met with a supplier of a new machine that is faster, more reliable, and uses less energy. Use of this new machine would result in a significant difference in future cash flows due to substantial cost savings associated with operating efficiencies. The list price of the new machine is $200,000 & the supplier has agreed to provide a trade-in allowance of $177,000 for the old machine with the balance owing to be paid in cash. 14 15 21 22 Finish att Timeler Tree-For-Me uses the Double Declining:Balance method of depreciating capital assets. Calculate the net book value of the old machine as of December 31, 2019. 2 ] A - B 13 3 How would you classify the transaction from the perspective of Tree-for-Me Company? is the transaction Monetary Non-monetary with commercial substance? or non-monetary with no commercial substance? Provide a full explanation with any calculations you think are necessary to support your answer 7 B III % 3 pre necessary joumarents needed to account for the trade in of the old machine for the new machine 7 A B General Journal Date Account Debit Credit Would your answer change if the new machine would NOT allow Tree-for-Me Company to realize ubstantial cost savings associated with operating efficiencies? plain how the accounting for the trade-in would be different