Wendell Corporation exchanged an old truck and $65,000 cash for a new truck. The old truck had an original cost of $120,000 and $80,000 in accumulated depreciation and a fair value of $45,000. Required:

1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. (Show your computation)

2. Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance. (Show your computation)
3. Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance and the fair value of old truck is only $20,000. (Show your computation)