On March 1, 2014, Wallace Company purchased a new machine with a suggested retail price of $123,000.

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On March 1, 2014, Wallace Company purchased a new machine with a suggested retail price of $123,000. The new machine was to replace an old machine that originally cost $90,000 and had $36,000 of accumulated depreciation at the time of the exchange. The retailer was offering Wallace a trade-in allowance of $60,000. Record the exchange assuming the fair values are not known.

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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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