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Nonmonetary Exchange. A Machine Cost $240,000, Has Annual Depreciation Expense of $48,000

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Nonmonetary exchange.
A machine cost $240,000, has annual depreciation expense of $48,000, and has accumulated depreciation of $120,000 on December 31, 2014. On April 1, 2015, when the machine has a fair value of $96,000, it is exchanged for a similar machine with a fair value of $288,000 and the proper amount of cash is paid. The exchange lacked commercial substance.
InstructionsPrepare all entries that are necessary at April 1, 2015.


Definitions:

Cytosine

A pyrimidine base found in DNA and RNA that pairs with guanine.

Guanine

One of the four main nucleobases found in DNA and RNA, it pairs with cytosine during DNA replication.

Hydrogen Bonds

Weak bonds formed between a hydrogen atom and a more electronegative atom, important in the structure of DNA and proteins.

Adenine

A nucleotide base present in DNA and RNA, pairing with thymine in DNA and uracil in RNA, and is one of the four nucleotide bases.

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