PROBLEM FOUR Machinery acquired at a cost of $90,000 and on which there is accumulated depreciation of S50,000 (including depreciation for the current year to date) is exchanged for similar machinery. For financial reporting purposes, present the journal entries to record the disposition of the old machinery and the acquisition of the new machinery under each of the following assumptions: Price of new machinery, $115,000; trade-in allowance on old machinery, $4,000; balance paid in cash. Price of new machinery, $115,000; trade-in allowance on old machinery, $44,000; balance paid in cash