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Question
Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000. In recording this transaction, Bacon Company should record
a. the new machinery at $16,700
b. the new machinery at $12,700
c. a gain of $1,500
d. a loss of $1,500
Answer
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