The transactions listed below occurred at Jarred Company during $20$X$1$:

DATE TRANSACTIONS

Mar. $25$ Exchanged a printer $($Office Equipment$)$ that had an original cost of $$5,760$ when purchased on January $4$th$,$ two

years ago. The useful life of the old asset was originally estimated at six years and the salvage value at

$$120.$ The new printer had a price and market value of $$8,320.$ Jarred Co$.$ exchanged the old machine and paid

$$4,160$ cash. The new printer is estimated to have a useful life of five years and a salvage value of $$520.$

July $19$ Exchanged a truck $($Vehicles$)$ for a new one that had a sales price, and fair value, of $$41,200.$ Received a

trade$-$in allowance of $$9,700$ on the old truck and paid cash of $$31,500.$ The old truck had been purchased for

$$31,880$ on May $27$ th$,$ three years earlier. The life of the old truck was originally estimated at four years and

the salvage value at $$5,000.$ The life of the new truck is estimated to be five years and it is estimated to

have a salvage value of $$8,000.$

Aug. $18$ Sold a truck that was purchased on January $5$th$,$ two years ago, for an original purchase price of $$36,440.$ It

had an estimated life of four years and an estimated salvage value of $$6,200.$ Sales price is as indicated in

Instructions, below.

Required:

Note: In following these instructions, assume that straight$-$line depreciation is used and that depreciation was last recorded on

December $31,20$X$0.($Note: The presentation in the text related to the exchanges of assets has been superseded by FAS $153.$

Under FAS $153,$ gains and losses on the exchange of assets that have commercial substance are recognized in full. The deferral of

gains $($by reducing the basis in the new asset$)$ only pertains to assets that lack commercial substance.$)$

Prepare the journal entries to record the two exchange transactions.

Record the journal entries for the truck sold on August $18,20$X$1.$

a$.$ The sales price was $$18,500.$

b$.$ The sales price was $$15,000.$

Analyze:

What was the book value of the truck sold on August $18?$

Complete this question by entering your answers in the tabs below.

Record the journal entries for the truck sold on August $18,201,$ assuming:

a$.$ The sales price was $$18,500.$

b$.$ The sales price was $$15,000.$

$($Round your answers to the nearest whole dollar amount.$)$

View transaction IIst