On January $2,2023,$ Direct Shoes Inc. disposed of a machine that cost $$88,000$ and had been depreciated $$47,650.$ Present the journal entries to record the disposal under each of the following unrelated assumptions:

a$.$ The machine was sold for $$36,500$ cash.

Journal entry worksheet $$

$1$

Record the sale of machine.

Note: Enter debits before credits.

$2$:$05$ PM

b$.$ The machine was traded in on new tools having a $$125,000$ cash price. A $$44,000$ trade$-$in allowance was received, and the balance was paid in cash. Since the tools have been customized, the fair values are not known.

Journal entry worksheet

$1$

Record the exchange of machine.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2023,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$$

$2$:$05$ PM

c$.$ The machine plus $$72,000$ was exchanged for a delivery van having a fair value of $$108,000.$

Journal entry worksheet $$

Record the exchange of machine.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2023,,,],[,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

$2$:$05$ PM

d$.$ The machine was traded for vacant land adjacent to the shop to be used as a parking lot. The land had a fair value of $$79,000,$ and Direct Shoes Inc. paid $$29,000$ cash in addition to giving the seller the machine.

Journal entry worksheet