(Answered) Asset exchange p5 caleb co owns a machine that costs 42400

Accounting

Asset exchange P5 Caleb Co. owns a machine that costs $ 42,400 with accumulated depreciation of $ 18,400. Caleb exchanges the machine for a newer model that has a market value of $ 52,000.

(1) Record the exchange assuming Caleb paid $ 30,000 cash and the exchange has commercial substance.

(2) Record the exchange assuming Caleb pays $ 22,000 cash and the exchange lacks commercial substance.

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