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Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000 less

Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000 less $4,000 accumulated depreciation) and a fair value of $6,000. The new model has a fair value of $16,000. Metro paid $10,000 to complete this exchange.

Prepare Metro's journal entry to record this exchange. Assume the exchange has commercial substance

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