Taxi Company exchanged a fleet of Toyota vehicles for anequal-sized fleet of Nissan vehicles from the Sentry

Sentry Transportation Group.

LOADING...

(Click the icon to view additionalinformation.)

Prepare the journal entry to record the exchange transaction for Botella's

Botella's Taxi Company. (Record debitsfirst, then credits. Exclude explanations from any journalentries.)

Account

Date of the Exchange

Automobiles (Nissan fleet-New)

491,300

Accumulated DepreciationAutomobiles (Toyota fleet-Old)

513,000

Cash

119,400

Automobiles (Toyota fleet-Old)

1,091,000

Gain on Exchange of Automobiles

32,700

This question is complete. Move your cursor over or tap on the red arrows to see incorrect answers.

All parts showing

Similar Question

More Info

The carrying value and fair value of each fleet of vehicles on the date of the exchange are asfollows:

Accumulated

Carrying

Fair

Asset

Cost

Depreciation

Value

Value

Toyota fleet (Asset Given Up)

$

1,091,000

$

513,000

$

578,000

$

796,000

Nissan fleet (Asset Received)

$

960,000

$

297,000

$

663,000

$

676,600

Botella's

Botella's Taxi received cash of $ 119 comma 400

$119,400 and the Nissan fleet in exchange for the Toyota fleet. Botella's

Botella's Taxi does not expect the future cash flows to change significantly as a result of this exchangeand, therefore, the transaction lacks commercial substance.