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10. (8 marks) a) Matti Auto traded one of its used storage trailers (cost $50,000, accumulated depreciation $36,000) and a fair value of $20,000 for
10. (8 marks) a) Matti Auto traded one of its used storage trailers (cost $50,000, accumulated depreciation $36,000) and a fair value of $20,000 for another used trailer. Matti also pays $1,600 cash. Prepare the journal entry to record the exchange using the fair value standard. (use the form on the next page) b) Using the same data as part a, prepare the journal entry to record the exchange assuming there is no commercial substance
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