Question: Robertson Company exchanged a machine for some land. The machine had cost $19,000, was 60% depreciated, and could be sold for $6,500. Robertson paid $950

Robertson Company exchanged a machine for some land. The machine had cost $19,000, was 60% depreciated, and could be sold for $6,500. Robertson paid $950 in addition to giving up the machine.

Required:

a. Compute the amount at which the land should be recorded and the amount of gain or loss on the exchange.

b. Assume, instead, that Robertson exchanged the machine for a new, more efficient machine with a fair value of $4,700, while still paying $950 as before. Compute the gain or loss that would be recorded on the sale of the old machine by Roberto.

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