4.Assume that a machine, with a carrying amount of $45,000 (cost: $50,000 and accumulated depreciation:...
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Accounting
4.Assume that a machine, with a carrying amount of $45,000 (cost: $50,000 and accumulated depreciation: $5,000), is given in exchange for another similar machine. The exchange is considered to have no impact on future cash flows (or present value thereof) of the business as a whole. Required: Discuss how this should be recorded in the general ledger, if at all, assuming that: A. the fair value of the machine given up is $30,000 (the fair value of the newly acquired machine is unavailable); B. the fair value of the newly acquired machine is $30,000 (the fair value of the machine given up is unavailable); and c. neither the fair value of the machine given up nor the machine acquired is available
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