Pacific company trades its used machine for a new model at Hikma stores. The exchange has commercial substance. The used machine has a book value of 10,000 (original cost, 14,000 less 4,000 accumulated depreciation) and a fair value of 8,000. The price of the new model is 20,000 but Hikma stores offers Pacific company a trade-in allowance of 10,000 for the used machine. Required: A Compute the cost of the new machine for Pacific company B. Show the journal records of the transaction in the book of pacific company