Record depreciation for 2021 on the new trucks acquired in the exchange assuming a 5 year life. (You do not need to record depreciation for any other assets.) See Question 1 to calculate depreciation.

1. 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.