During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and was 50% depreciated for another used machine and     paid a cash difference of 160 000. The fair value of the old packaging machine     was determined to be 700 000.   What is the cost of the machine acquired in the exchange? What is the gain on exchange?

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Q: Want Answer of the question

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A: Formulas:

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