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In June, Kinney took advantage of the opportunity to exchange 2 of its delivery trucks for 2 newer model trucks. The delivery trucks were originally
In June, Kinney took advantage of the opportunity to exchange 2 of its delivery trucks for 2 newer model trucks. The delivery trucks were originally purchased at cost of $150,000 and their current book value is $84,000. The fair value of the trucks is $87,000. Kinney had to pay $90,000 cash as part of the deal.
How to record a journal entry for this transaction.
Thanks.
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