Glandale Corporation exchanged an old truck and $65,000 cash for a new truck The old truck had an original cost of $120,000 and $80,000 in accumulated depreciation and a fair value of $45,000 Instructions 1 Prepare the journal entry to record the exchange Assume the exchange has commercial substance ( Show computation ) 2 Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance ( Show computation 3 Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance and the fair value of old truck is only $20,000 ( Show computation )

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Glandale Corporation exchanged an old truck and $65,000 cash for a new truck  The old truck had an original cost of $120,000 and $80,000 in accumulated depreciation and a fair value of $45,000  Instructions  1  Prepare the journal entry to record the exchange  Assume the exchange has commercial substance  ( Show computation ) 2 Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance ( Show computation 3 Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance and the fair value of old truck is only $20,000 ( Show computation )

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Glandale Corporation exchanged an old truck and $65,000 cash for a new truck. The old truck had

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Income Tax Fundamentals 2013

Glandale Corporation exchanged an old truck and $65,000 cash for a new truck. The old truck had

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Income Tax Fundamentals 2013

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