A machine cost $24,000, has annual depreciation of $4,000, and has accumulated depreciation of $18,000 on...

  

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A machine cost $24,000, has annual depreciation of $4,000, and has accumulated depreciation of $18,000 on December 31, 2000. On April 1, 2001, when the machine has a market value of $5,500, it is exchanged for a similar machine with a fair value of $27,000 and the proper amount of cash is paid. 2. The gain to be recorded on the exchange is The new machine should be recorded at ? A machine cost $24,000, has annual depreciation of $4,000, and has accumulated depreciation of $18,000 on December 31, 2000. On April 1, 2001, when the machine has a market value of $5,500, it is exchanged for a similar machine with a fair value of $27,000 and the proper amount of cash is paid. 2. The gain to be recorded on the exchange is The new machine should be recorded at ?