In a transaction with commercial substance, April Co. exchanged an old machine costing $19,800 with Accumulated Depreciation

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In a transaction with commercial substance, April Co. exchanged an old machine costing $19,800 with Accumulated Depreciation of $10,400 for a new machine with a market value of $19,100 and a cash payment of $6,010.

1. What is the book value of the old machine? What is the recognized gain on the exchange?

2. Provide a journal entry to record the exchange.

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College Accounting A Practical Approach

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Question Posted: Mar 03, 2020 06:58 AM

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In a transaction with commercial substance, April Co. exchanged an old machine costing $19,800 with Accumulated Depreciation

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