Acer Company disposed of a machine. The machine originally cost $75,000 and accumulated depreciation through the...

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Acer Company disposed of a machine. The machine originally cost $75,000 and accumulated depreciation through the date of disposal was $55,000. Record the journal entries for the disposition of the machine under each of the following independent scenarios. Remember what I said in class: if I say that it has commercial substance or it lacks commercial substance, do not question it. Just apply the appropriate rules to the facts given. a. The machine was sold for $32,000. b. The machine was traded for a building (has commercial substance) and the proper amount of cash was exchanged. The building had a fair market value at the time of $120,000. The parties agreed that the machine had a market value of $14,000. The machine was traded for another machine (lacks commercial substance) and the proper amount of cash was exchanged. The new machine had a fair market value at the time of $20,000. The parties agreed that the old machine had a market value of $25,000. с. The machine was traded for another machine that manufactures a totally diffferent product (has commercial substance) and the proper amount of cash was exchanged. The new machine had a fair market value at the time of $20,000. The parties agreed that the old machine had a market value of $25,000. d. Acer Company disposed of a machine. The machine originally cost $75,000 and accumulated depreciation through the date of disposal was $55,000. Record the journal entries for the disposition of the machine under each of the following independent scenarios. Remember what I said in class: if I say that it has commercial substance or it lacks commercial substance, do not question it. Just apply the appropriate rules to the facts given. a. The machine was sold for $32,000. b. The machine was traded for a building (has commercial substance) and the proper amount of cash was exchanged. The building had a fair market value at the time of $120,000. The parties agreed that the machine had a market value of $14,000. The machine was traded for another machine (lacks commercial substance) and the proper amount of cash was exchanged. The new machine had a fair market value at the time of $20,000. The parties agreed that the old machine had a market value of $25,000. с. The machine was traded for another machine that manufactures a totally diffferent product (has commercial substance) and the proper amount of cash was exchanged. The new machine had a fair market value at the time of $20,000. The parties agreed that the old machine had a market value of $25,000. d.

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