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Tull Co. exchanged an old machine for a new machine in an exchange with commercial substance. The old machine cost $500,000, had accumulated depreciation of
Tull Co. exchanged an old machine for a new machine in an exchange with commercial substance. The old machine cost $500,000, had accumulated depreciation of $400,000, and had a fair value of $75,000. Tull received cash of $30,000. The journal entry for the exchange would include: Machine (new) of $130,000; Loss on Exchange of $150,000 Machine (new) of $70,000; Loss on Exchange of $70,000 Machine (new) of $45,000; Gain on Exchange of $45,000 Machine (new) of $45,000; Loss on Exchange of $25,000 Morice exchanged an old machine for a new machine in an exchange with commercial substance. The old machine cost $250.000, had accumulated depreciation of $210,000, and had a fair value of 5100.000, Mori paid cash of $225.000 The journal entry for the exchange would include: Machine (newl of $325,000: Loss on Exchange of $150.000 Machine (new) of $265.000; Loss on Exchange of $150.000 Machine (new) of $325.000, Gain on Exchange of $60,000 Machine (new) of $265.000: Gain on Exchange of $60,000
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