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During the current year, Garrision construction trades an old truck that has . value of 80000 (original cost 140000 less accumulated depreciation 60000 ) for
During the current year, Garrision construction trades an old truck that has . value of 80000 (original cost 140000 less accumulated depreciation 60000 ) for new truck from Keillor manufacturing Company. The new truck cost Keillor 165000 to manufacture and is classified as inventory. The following information is available. Instructions : a) Assume that this exchange is considered to have commercial substance, prepare the journal entries on the books of ( 1 ) Garrison CO. and (2) Keillor CO. b) Assuming that this exchange lacks commercial substance for Garrison, prepare the journal entries on the books of Garrison Co. c) Assuming the same facts as those in ( a ) except that the fair market value of the old truck is 98000 and the cash paid is 92000 , prepare the journal entries on the books of ( 1 ) Garrison Co, and ( 2 ) Keillor Co. d) Assuming the same facts as those in ( b ) except that the fair value of the old truck is 87000 and the cash paid 103000 , prepare the journal entries on the books of ( 1 ) Garrison Co. and ( 2 ) Keillor Co
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