Question - Quinn Co. has a machine that cost $30,000 on July 1, 2000. Thisold machine had an estimated life of six years and a salvage valueof $6,000. On December 31, 2003, the old machine with a fair market valueof $18,500 is exchanged t o for a new machine with a fair market value of$20,000.
Required
1. Given the above, how much cash did Quinn have to pay?
2. Assume that the above exchange lacks commercial substance, prepare the journal entry to record the exchange
3. Assume that the above exchange has commercial substance, prepare the journal entry to record the exchange
4. Assume the fair market value of the new machine was $15,000, Quinn received $3,500 and the exchange lacks commercial substance, prepare the journal entry to record the exchange.
Please show all work! I will award the best answer that shows work and is correct!