Tan Corp. (Tan) has a machine that they purchased on March 3…

Questions

Tаn Cоrp. (Tаn) hаs a machine that they purchased оn March 30, 2019, fоr $106,000. This machine had an estimated life of ten years and a residual value of $6,000. On December 31, 2023, the old machine is exchanged for a very similar machine with a fair value of $58,000. Tan also received $2,000 cash. The company records depreciation annually, prorated to the nearest month and was recorded up to December 31, 2022 using straight-line depreciation.   Required: Prepare all entries that are necessary to record this information in Tan Corp.'s books on December 31, 2023, assuming there is no commercial substance. Fill in the blue journal entry form below, note that extra cells have been provided.  

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