Marin Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Marin traded...

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Marin Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Marin traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer $21,165 Cash paid 14.076 Cost of old machine (4-year life, $1,530 salvage value) 17,850 8,160 Accumulated depreciation-old machine (straight-line) 6,834 Secondhand fair value of old machine Prepare the journal entries necessary to record this exchange, assuming that the exchange (al has commercial substance, and () lacke commercial suibstance. Marin's fiscal year ends on December 31. and Marin recorded depreciation on the old imachine through Septenber 3o 2017 (Credit account titles are automatically indented when amount is entered. Do not indent manually Credit education.wiley.com W Ch 10: Practice Exercises NWP Assessment Player Ul Application ce Exercises Question 2 of 2 -/1 E (a) Exchange has commercial substance: Depreciation Expense Accumulated Depreciation-Machinery (To record current depreciation) Accumulated Depreciation-Machinery Machinery Cash Machinery Gain on Disposal of MachineryY (To record exchange of the machine) (b) Exchange lacks.commercial substance: dtv 30 uestion 2 of 2 -/1 (b) Exchange lacks commercial substance: Depreciation Expense Accumulated Depreciation-Machinery (To record current depreciation) Accumulated Depreciation-Machinery Machinery Machinery Machinery Cash Gain on Disposal of Machinery (To record exchange of the machine) I!! Marin Inc. purchased a commercial grade soft-serve ice cream machine on September 30, 2017. Marin traded in its existing machine and paid cash in the transaction. The details of the transaction are as follows: List price of new freezer $21,165 Cash paid 14.076 Cost of old machine (4-year life, $1,530 salvage value) 17,850 8,160 Accumulated depreciation-old machine (straight-line) 6,834 Secondhand fair value of old machine Prepare the journal entries necessary to record this exchange, assuming that the exchange (al has commercial substance, and () lacke commercial suibstance. Marin's fiscal year ends on December 31. and Marin recorded depreciation on the old imachine through Septenber 3o 2017 (Credit account titles are automatically indented when amount is entered. Do not indent manually Credit education.wiley.com W Ch 10: Practice Exercises NWP Assessment Player Ul Application ce Exercises Question 2 of 2 -/1 E (a) Exchange has commercial substance: Depreciation Expense Accumulated Depreciation-Machinery (To record current depreciation) Accumulated Depreciation-Machinery Machinery Cash Machinery Gain on Disposal of MachineryY (To record exchange of the machine) (b) Exchange lacks.commercial substance: dtv 30 uestion 2 of 2 -/1 (b) Exchange lacks commercial substance: Depreciation Expense Accumulated Depreciation-Machinery (To record current depreciation) Accumulated Depreciation-Machinery Machinery Machinery Machinery Cash Gain on Disposal of Machinery (To record exchange of the machine) I!!

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