Save Question 55 (11 points) On April 1 of the current year, a company traded an old machine that originally cost $32,000 and that had accumulated depreciation of $24,000 for a similar new machine that had a price of $40,000. 1. Prepare the entry to record the exchange if $35,000 was paid in cash. In addition to the above transaction also on April 1 of the current year, a company disposed of an automobile that had cost S20,000. The accounting records showed accumulated depreciation for this automobile of S8,100 as of April 1 of the current year. Prepare the entries for the following separate assumptions: 1) The asset was disposed of after an accident, and $10,500 cash was received from an insurance claim. 2) The asset was disposed of with no cash received. 3) The asset was sold for $12,500 in cash
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