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On January $2,2023,$ Direct Shoes Inc. disposed of a machine that cost $$84,000$ and had been depreciated $$45,250.$ Present the journal entries to record the disposal under each of the following unrelated assumptions:

a$.$ The machine was sold for $$32,500$ cash.

Journal entry worksheet

$1$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2023,,,],[,,,],[,,,],[,,,],[,,,]]$

b$.$ The machine was traded in on new tools having a $$117,000$ cash price. A $$40,000$ trade$-$in allowance was received, and the balance was paid in cash. Since the tools have been customized, the fair values are not known.

Journal entry worksheet

$1$

Record the exchange of machine.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2023,,,],[,,,],[,,,],[,,,],[,,,]]$

c$.$ The machine plus $$68,000$ was exchanged for a delivery van having a fair value of $$104,000.$

Journal entry worksheet

$1$

R

Note: Enter debits before credits.

d$.$ The machine was traded for vacant land adjacent to the shop to be used as a parking lot. The land had a fair value of $$75,000,$ and Direct Shoes Inc. paid $$25,000$ cash in addition to giving the seller the machine.

Journal entry worksheet

$1$

Record the exchange of machine.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $02,2023,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

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