A Company Exchanges an Old Machine for a New Machine

question 157

Multiple Choice

A company exchanges an old machine for a new machine and cash is paid for the new machine.Assume there is a Gain on Exchange of Machine.In the journal entry to record the exchange by the owner of the old machine,which accounts will be debited?

• A)Machine and Accumulated Depreciation - Machine
• B)Cash and Machine
• C)Accumulated Depreciation - Machine,Cash and Machine
• D)Accumulated Depreciation - Machine,Cash,Machine and Gain on Exchange of Machine

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