Question: a machine costing 3 7 , 5 0 0 with an expected salvage value 1 , 5 0 0 , is traded in after six

a machine costing 37,500 with an expected salvage value 1,500, is traded in after six years of its expected ten year life. the new machine has a fair market value of 45,000 and is obtained for the old asset and 35,000, which is paid in cash.

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