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Give the necessary journal entry

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Problem 1: On December 5 Crater Company traded a four year old machine for a similar new machine. The old machine had a recorded cost of $8,000 and accumulated depreciation (updated to the date of trade) of $6,000. The new machine has a list price of $12,000 and the old machine has a fair value of $2,500. Cash of $9,500 was paid to complete the transaction. This exchange has commercial substance. Give the necessary journal entry.

Reference no: EM132754248

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