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Our Company trades in old equipment that cost $121,500, has a book value of $79,500 and a fair market value of $67,500. The new equipment
Our Company trades in old equipment that cost $121,500, has a book value of $79,500 and a fair market value of $67,500. The new equipment has a list price of $141,000. We receive a trade in allowance for the old equipment of $75,000. This transaction has commercial substance. Prepare the journal entry to record this exchange.
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