Question I 1 pts Desert Company exchanges one machine for another similar machine and gives cash in the exchange. The exchange lacks commercial substance. If a loss on the disposal of the old machine is indicated. the loss will: C} reduce the amount to be recorded as the cost of the new asset (3 be debited directly.r to the owner's capital account C} increase the amount to he recorded as the cost of the new asset C} be reported on the income statement In its entlrety