Tosh Corp. has agreed to exchange an old computer system for a van from Inconclusive, Inc. In addition, Inconclusive will pay Tosh $2,000. The computer originally cost Tosh $25,000 and its current book value is $14,000. The van's original cost was $30,000 and its accumulated depreciation is $12,000. The appraised value of the computer is $15,000, and the appraised value of the van is $13,000.
Required:
Prepare the journal entries to record the exchange on both companies' books.

Question

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The Answer of Tosh Corp. has agreed to exchange an old computer system for a van from Inconclusive, Inc. In addition, Inconclusive will pay Tosh $2,000. The computer originally cost Tosh $25,000 and its current book value is $14,000. The van's original cost was $30,000 and its accumulated depreciation is $12,000. The appraised value of the computer is $15,000, and the appraised value of the van is $13,000.
Required:
Prepare the journal entries to record the exchange on both companies' books.

Tosh Corp Has Agreed to Exchange an Old Computer System for for a Van