24-2) Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000) and a fair value of $13,000. The new model has a fair value of...

24-2) Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000) and a fair value of $13,000.  The new model has a fair value of $16,000 and  Denver gives Metro a trade-in allowance of $15,000 for the used machine.  Assume the exchange has No commercial substance.

1. A) How much does Metro have to pay to or receive from Denver? Explain?

.’

1. B) Prepare Metro's journal entry to record this