Problem 7-30 Points - Acquisition and Sale of Property AND Depreciation - Straight-line Acquisition of Equipment - A machine cost $1,200,000, has annual depreciation of $200,000, and has accumulated depreciation of $950,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $275,000, it is exchanged for a machine with a fair value of $1,350,000 and the proper amount of cash is paid. The exchange had commercial substance. Required: Prepare the entry to record the acquisition of the new equipment. Depreciation - Henry Company purchased a depreciable asset for $360,000. The estimated salvage value is $33,000, and the estimated useful life is 10 years. The straight-line method will be used for depreciation. What is the depreciation base of this asset? How much depreciation expense will be recognized on an annual basis (12 months)? Prepare the journal entry to recognize 12 months depreciation expense