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Solutions Given data; cost of machine - celvage value = - market value = Cash received * $255000 $ 15000 $162000 $ 18000 · (9) Annual depreciation of old machinary = 255000 15000 --$240ou o = $24000 Depreciarily for years. 2013 = 24000x9. 12 ; z 2160vo = $$18000 Book Value on Dec 23 200 2 -5S OD 5000 - 2490X4 2 a 55000-11Youo $141000 Note; Full year depreciation is considered as different of danga 75 neslegible
gain on exchange - 162000 + 18001 - 1400 39000 I b) Jazional entries on 23rd decembes goot. particulars Delit a credir Newbrachine - Dr 162000 161 000 Cash .
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De 1800 39000 to old machine To gain exchange (Being exchange of old machine) aroup 20000 Depreciation on Old machine to old machine
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