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On March 1, 2020, Wallace Company purchased a new machine with a suggested retail price of $123,000. The new machine was to replace an old

On March 1, 2020, Wallace Company purchased a new machine with a suggested retail price of $123,000. The new machine was to replace an old machine that originally cost $90,000 and had $36,000 of accumulated depreciation at the time of the exchange. The retailer was offering Wallace a trade-in allowance of $60,000. Record the exchange assuming the fair values are not known.

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