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PRINTER VERSION BACK NEXT Concept for Analysis 10-4 You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Original cost Accumulated depreciation Fair value Cash received (paid) Client A $105,500 44,800 73,300 (12,600) Client B $144,500 30,000 85,900 12,600 Your answer is partially correct. Try again Record the trade-in on Client A's books assuming the exchange has commercial substance. (If no entry is required, select "No Entry for the account titles and Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Equipment T 859001T TAccumulated Depreciation 44800 T T Loss on Disposal of ou TGain on Disposal of Equip LINK TO TENE ESOURCES Your answer is partially correct. Try again. Ting 2020) Record the trade-in on Client A's books assuming the exchange lades commercial substance. (If no entry is required, select "No Entry for the account title Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Pad Equipment 73300 44800 Accumulated Depreciation son Disposal of Eu Your answer is partially correct. Try again Countries are automatically indented when amount is entered. Do not indent Account Titles and Explanation Accumulated Depreciation TCash Disposal of E Gain on Disposal of Equip Your answer is partially correct. Try again. Record the entry on Client's books assuming the exchange lacks commercial substance (Round intermediate calculations to 5 decimal places, ep. 1.25124 and final answer to decimal places eg. 58,971. If no entry is required, select "No Entry for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Tities and Explanation Deba Equipment S110D Acomated Depreciation Loss on Disposal of Bull

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