Question
On January 1, 2020, a truck that cost Acadia Limited $10,300, on which $9,000 of depreciation ha is sold to Bonnie Corporation for a new
On January 1, 2020, a truck that cost Acadia Limited $10,300, on which $9,000 of depreciation ha is sold to Bonnie Corporation for a new truck. The fair market value of Acadia Limited's truck Limited also gave Bonnie Corporation $890 of cash. een accumulated, unknown. Acadia Bonnie Corporation's truck has a current fair market value of $10,000. Its original cost was $11,000 when it was purchased four years ago. At the time of original purchase, this asset had a five-year useful life and $1,000 residual value. From Acadia Limited's perspective, this transaction lacks commercial substance. From Bonnie Corporation's perspective, this transaction has commercial substances. REQUIRED (A) Give the journal entry(s) for Acadia Limited at January 1, 2020. (B) Give the journal entry(s) for Bonnie Corporation at January 1, 2020
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