Question: On 3 January 2016, Greskowiak Ltd exchanged a machine with a cost of $430 000 and accumulated depreciation of $150 000 for a new similar

On 3 January 2016, Greskowiak Ltd exchanged a machine with a cost of $430 000 and accumulated depreciation of $150 000 for a new similar machine with a cash price of $460 000. Ignore GST.

Required

A. Prepare general journal entries to record the exchange of the machines, assuming a trade-in allowance of $280000 was received for the old machine and $180000 was paid in cash.

B. Prepare general journal entries to record the exchange of machines assuming a trade-in allowance of $250000 for the old machine and $210000 was paid in cash.

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