This machinery was acquired by trading in used machinery. Facts concerning the trade-in are as follows....

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This machinery was acquired by trading in used machinery. Facts concerning the trade-in are as follows. Cost of machinery traded (old machine) Accumulated depreciation to date of sale (old machine) Fair value of machinery traded (old machine) Cash received $150,000 90,000 95,000 25,000 70,000 Fair value of machinery acquired (new machine) Record the journal entry for the above nonmonetary asset exchange for the following scenarios. Round to the nearest dollar: a. The transaction has commercial substance. b. The transaction lacks commercial substance. This machinery was acquired by trading in used machinery. Facts concerning the trade-in are as follows. Cost of machinery traded (old machine) Accumulated depreciation to date of sale (old machine) Fair value of machinery traded (old machine) Cash received $150,000 90,000 95,000 25,000 70,000 Fair value of machinery acquired (new machine) Record the journal entry for the above nonmonetary asset exchange for the following scenarios. Round to the nearest dollar: a. The transaction has commercial substance. b. The transaction lacks commercial substance.

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In accounting when an asset is acquired by trading in another asset the accounting entry to record the transaction depends on whether the transaction has commercial substance or not Commercial substan... View the full answer