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Prepare all entries that are necessary on April 1, 2013.

05 / 03 / 2018 Assignment

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A machine cost $140,000, has annual depreciation expense of $28,000, and has accumulated depreciation of $70,000 on December 31, 2012. On April 1, 2013, when the machine has a fair value of $56,000, it is exchanged for a similar machine with a fair value of $168,000 and the proper amount of cash is paid. The exchange lacked commercial substance.
Required:
Prepare all entries that are necessary on April 1, 2013.


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