2. Prepare the journal entries to show how Pipa would record this transaction assuming there is no commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

- Record the exchange of equipment, whose net book value was $54,000 (cost $202,000) and a fair value of $71,000, for purchase of a Truck for $13,100 assuming there was no commercial substance.

Pipa Incorporated entered into an arrangement with Gianardo Ltd. to exchange equipment and cash. Pipa gave up a piece of equipment that was no longer being used by the business, as well as $13,100 in cash. The equipment had a net book value of $54,000 (cost $202,000 ) and a fair value of $71,000. Gianardo is able to use the equipment in its manufacturing facility. In exchange for the equipment, Gianardo has provided Pipa with a new truck. The truck's fair value is estimated to be between $78,000 and $96,000, and it has a net book value of $80,000 (cost $141,000) ). Required: 1. Prepare the journal entries to show how Pipa would record this transaction assuming there was commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the exchange of equipment, whose net book value was $54,000 (cost $202,000) and a fair value of $71,000, for purchase of a Truck for $13,100 assuming there was commercial substance. Note: Enter debits before credits