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Posted: June 22nd, 2024
Quinn Co. has a machine that cost $30,000 on July 1, 2000.
Quinn Co. has a machine that cost $30,000 on July 1, 2000. Thisold machine had an estimated life of six years and a salvage valueof $6,000. On December 31, 2003, the old machine with a fair market valueof $18,500 is exchanged t o for a new machine with a fair market value of$20,000.Required1. Given the above, how much cash did Quinn have to pay?2. Assume that the above exchange lacks commercial substance, preparethe journal entry to record the exchange3. Assume that the above exchange has commercial substance, preparethe journal entry to record the exchange4. Assume the fair market value of the new machine was $15,000,Quinn received $3,500 and the exchange lacks commercialsubstance, prepare the journal entry to record the exchange.Please show all work! I will award the best answer that shows work and is correct!
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