Interstate Transportation Company exchanged a number of used trucks plus cash for a semi-truck. The used trucks have a combined book value of $42,000 (cost $64,000 less $22,000 accumulated depreciation. Interstates purchasing agent, experienced in the secondhand market, indicates that the used trucks have a fair market value of $49,000. In addition to the trucks, Interstate must pay $11,000 cash for the semi-truck. Interstate computes the cost of the semi-truck as follows.

1. A) Prepare the journal entries to record the transaction if it has commercial substance?

2. B) Prepare journal entries to record the transaction if it lacks commercial substance?

PLEASE SOLVE QUICKLY AND USE SIMPLE METHODS AND SHOW STEPS IM ONLY 2ND YEAR ACCOUNTING COLLEGE AND I DONT TAKE ADVANCED TECHNIQUES, THANK YOU