Provide the general journal entries recording the exchange

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Question - Samsung owns a manufacturing machine that costs $38,400 with accumulated depreciation of $20,400. Samsung exchanges the machine for a newer model that has a market value of $48,000.

1. Provide the General Journal entries recording the exchange assuming Samsung paid $32,000 cash and the exchange has commercial substance.

2. Provide the General Journal entries recording the exchange assuming Samsung pays $24,000 cash and the exchange lacks commercial substance.

Reference no: EM132909254

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