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Record the entry for the exchange transaction

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Question: Gamber Corp. has decided to trade in one its machines and obtain a newer version of the machine. This exchange does not have commercial substance. The old machine has a cost of $75,000 and accumulated depreciation of $60,000. Gamber will receive a new machine with a fair market value of $95,000 and pay $70,000 in cash.

a. Record the entry for the above exchange transaction.

b. Now assume that Gamber pays $90,000 and the transaction has commercial substance. Record the above exchange transaction under this condition.

Reference no: EM131748868

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