MC exchanged one of its milling machines, which had cost $60,000 and on which amortization of $50,000 had been recorded for a smaller milling machine with a firm cash asking price of $14,000. MC received a cash difference (boot) of $6,000.
(A) Give the entry on MC's books to record the exchange.
(B) Refer to the data given immediately above. Assume the same facts, except that MC paid cash boot of $6,000. Record the exchange on MC's books.

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The Answer of MC exchanged one of its milling machines, which had cost $60,000 and on which amortization of $50,000 had been recorded for a smaller milling machine with a firm cash asking price of $14,000. MC received a cash difference (boot) of $6,000.
(A) Give the entry on MC's books to record the exchange.
(B) Refer to the data given immediately above. Assume the same facts, except that MC paid cash boot of $6,000. Record the exchange on MC's books.

MC Exchanged One of Its Milling Machines, Which Had Cost