Information Processing, Inc. (IPI) exchanges its used machine for a new machine with Jerrod Business Solutions Inc. The exchange has commercial substance. IPI’s used machine has a book value of $8,000 (original cost $12,000 less $4,000 accumulated depreciation) and a fair value of $6,000. The new machine has a fair value of $16,000. IPI also pays Jerrod Business Solutions $7,000  cash in the transaction. Accounting Issue(s):  What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions?  Question  1:  What is the correct amount that IPI should record for the machine it acquired in the exchange with Jerrod Business Solutions?   $6,000  $7,000  $8,000 $13,000 $15,000 $16,000

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