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Refer to the information in CP 8-4 and 8-7. Assume that on May 31, 2019 Mayr traded in the machine on an improved model with a listed selling price of $150,000. The company received a trade-in allowance of $100,000 on the old machine. The fair value of the old machine was $95,000.
Required: Prepare the journal entry to record the trade-in on the equipment. Assume the straight-line method of depreciation is used.
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