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Problem - Bumpy Company has an old machine that originally cost $66,000 and has accumulated depreciation that has grown to $63,500.
The old machine is traded in on a new one instead of simply being disposed of. The agreed upon price of the replacement machine is $77,000.
Journalize the exchange entry required if the dealer offers the following trade-in-allowances (TIA):
a) TIA = $2,500
b) TIA = $1,200
c) TIA = $8.700
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