Question
On January 2, 2020, Raid Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to
On January 2, 2020, Raid Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to the old and new trucks follow:
-Old Truck
Original cost $45,000
Accumulated depreciation as of January 2, 2020 30,000
-New Truck
List price 75,000
The FV of old Truck 14,000
Cash to be paid 56,000
What is the journal entry for the trade?
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
IFRS Edition
978-1118443965, 1118800532, 9781118800539, 978-0470873991
