Whispering Co. had a sheet metal cutter that cost $100,000 on January 5, 2021. This old cutter had an estimated life of ten years and a salvage value of $17,000. On April 3, 2026, the old cutter is exchanged for a new cutter with a fair value of $60,000. The exchange lacked commercial substance. Whispering also received $15,000 cash. Assume that the last fiscal period ended on December 31, 2025, and that straight-line depreciation is used. (b) Your answer is partially correct. Prepare all entries that are necessary on April 3, 2026. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles and Explanation Depreciation Expense Accumulated Depreciation-Machinery (To record depreciation.) Cash Machinery Debit 2,075 15,000 6000 Accumulated Depreciation-Machinery 43,575 Machinery Gain on Disposal of Machinery (To record exchange of machineries.) Credit 2,075 100000 List of Accounts Save for Later Last saved 2 hours ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Attempts: 1 of 5 used Submit Answer