An entity acquired an item of machinery in exchange for a motor vehicle. The carrying amount of the machinery is $8000 and its fair value is $10 000. The journal entry to record the acquisition of the machinery will include:
A) a loss on acquisition of $2000.
B) a gain on sale of $2000.
C) proceeds on sale of motor vehicle of $2000.
D) proceeds on sale of machinery of $2000.
Correct Answer:
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