QS 8-20A (Algo) Asset exchange LO P5 Caleb Co. owns a machine that had cost $49,200 with accumulated depreciation of $21,800. Caleb exchanges the machine for a newer model that has a market value of $58,000. 1. Record the exchange assuming Caleb paid $33,400 cash and the exchange has commercial substance. 2. Record the exchange assuming Caleb paid $25,400 cash and the exchange has commercial substance. *** View transaction list View journal entry worksheet No Transaction General Journal Debit Credit A 1 58,000 Machinery (new) Loss on exchange of assets Accumulated depreciation-Machinery (old) Machinery (old) 21,800 49,200 Cash 33,400 B 2 58,000 21,800 Machinery (new) Accumulated depreciationMachinery (old) Machinery (old) Cash Gain on exchange of assets 49,200 25,400