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Bahrain Corporation follows a policy of a 10% depreciation charge per year on machinery.
The following transactions occurred in 2020. Company year end is December 31:
June 30, 2020 Machinery with a cost of $120,000 and accumulated depreciation through December 31, 2019 of $90,000 was exchanged, along with $75,000 cash, for a parcel of land with a fair market value of $115,000.
Required:
Question 1 Prepare all appropriate journal entries related to the machinery for 2020, including its subsequent disposal.
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