Asset exchange - no commercial substance Turkey Corp.has a computer that they purchased on March 30, 2010 for $106,000.This computer had an estimated life of ten years and a residual value of $6,000.On December 31, 2014, the old computer is exchanged for a similar computer with a fair value of $58,000.Turkey also received $2,000 cash.Assume that the last fiscal period ended on December 31, 2013, and that straight-line depreciation is used. Instructions Prepare all entries that are necessary on December 31, 2014.
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