Monty Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $$50,000($cost $$80,500$ less accumulated depreciation $$30,500).$ Its fair value is $$25,100,$ and cash of $$6,400$ is paid.

Prepare the entry to record the exchange, assuming the transaction has commercial substance. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Include in your journal entry separate account entries for both the new and old equipment.$)$

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Monty Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $$30,700($cost $$61,100$ less accumulated depreciation $$30,400).$ Its fair value is $$45,500,$ and cash of $$7,700$ is paid.

Prepare the entry to record the exchange. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Include in your journal entry separate account entries for both the new and old equipment.$)$

Account Titles and Explanation

Debit

Credit

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Attempts: $0$ of $2$ used