A machine cost $40,000 and has accumulated depreciation of $22,000 on December 31, 2014. At...
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Accounting
A machine cost $40,000 and has accumulated depreciation of $22,000 on December 31, 2014. At that time, the machine had a fair value of $16,000 and has been exchanged for a similar machine with a fair value of $48,000 and the proper amount of cash is paid. The exchange lacked commercial substance.
Prepare the necessary journal entry to record the above exchange.
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