Information: On December 15th, Terry's management decided to trade in one of their machines for a newer model. After long discussions with their auditors, Terry's management has decided that the increased capacity of the new machine makes this an exchange with substance. The old machine originally cost $300,000 and had been fully depreciated to its $15,000 salvage value. The new machine sold for $660,000, but the vendor offered Terry a $90,000 trade-in on the old machine if the balance is paid in cash. Terry's management was excited about the deal, since they would have been able to sell the old machine for only $65,000 if they had tried to dispose of it on the open market. Although the deal was completed on December 29", no journal entries have yet been recorded