Annual depreciation expense

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Reference no: EM131202812

A machine cost $300,000, has annual depreciation expense of $60,000, and has accumulated depreciation of $150,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $120,000, it is exchanged for a similar machine with a fair value of $360,000 and the proper amount of cash is paid. The exchange lacked commercial substance. Using the attached T-account template, prepare all entries that are necessary at April 1, 2018.

Reference no: EM131202812

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