View Policies Show Attempt History Current Attempt in Progress You have two clients that are considering trading machinery with each other. Although the machines are different from each other you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts Client A Clients $14450 $105.500 Original cost Accumulated depreciation 44.800 80.800 Fair value 73300 85.900 Cash received (paid) (12.600) 12.600 (a) 1 - Your answer is correct Your answer is partially correct Record the trade-in on Client A's books assuming the exchange has commercial substance. If no entry is required, select 'No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Machinery 144500 Mach 44KX Accumulated Depreciation Machinery 1300 Cash 105500 Machinery Gain on Disposal of Machinery e Textbook and Media Iict Accuts O G @ search