Gamma Co. owns a machine that costs $84,800 with accumulated depreciation of $36,800. Gamma exchanges the machine

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Gamma Co. owns a machine that costs $84,800 with accumulated depreciation of $36,800. Gamma exchanges the machine for a newer model that has a market value of $104,000.

(1) Record the exchange assuming Gamma paid $60,000 cash and the exchange has commercial substance.

(2) Record the exchange assuming Gamma pays $44,000 cash and the exchange lacks commercial substance.

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Financial Accounting with IFRS Fold Out Primer

ISBN: 978-0077413804

5th edition

Authors: John Wild

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Question Posted: Mar 18, 2015 10:46 AM

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Gamma Co. owns a machine that costs $84,800 with accumulated depreciation of $36,800. Gamma exchanges the machine

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Financial Accounting with IFRS Fold Out Primer

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