Required information [The following information applies to the questions displayed below.] On January 2, 2017, Bering Co. disposes of a machine costing $44,000 with accumulated depreciation of $24,625. Prepare the entries to record the disposal under each of the following separate assumptions. 3. The machine is traded in for a newer machine having a $60,200 cash price. A $15,000 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance. Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 Jan 02 60,200 24,625 Machinery (new) Accumulated depreciation Machinery (old) Loss on exchange of machinery Machinery (old) Cash 30,200 X 44,000 45,200 11