Problem:
Jan. 2, 2002 Rit Co. disposes of a machine costing $44,000 w/ accumulated depreciation of $24,625.
What is the entry if:
- The machine is sold for $18,250 cash?
- The machine is traded in on a similar but newer machine having a $60,200 cash price, a $25,000 trade in allowance is received, and the balance is paid in cash?