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Problem 5(10%) Suppose that on December 31, Sam Company exchanges used equipment for new equipment. The old equipment has a historical cost of $20,000 and

Problem 5(10%) Suppose that on December 31, Sam Company exchanges used equipment for new equipment. The old equipment has a historical cost of $20,000 and accumulated depreciation of $18,000. Its current book value is $2,000. The company acquires the new equipment with a market value of $16,000 and pays cash of $4,000. This exchange has commercial substance. INSTRUCTIONS: Journalize the exchange transaction

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