A truck was acquired for $100,000 and has accumulated depreciation of $70,000.The business exchanges the truck for a new one.The new truck has a market value of $120,000 and the business pays $100,000 cash.Assume the exchange has commercial substance.Prepare the journal entry to record this transaction.

Question

Quizplus · Accepted Answer

The Answer of A truck was acquired for $100,000 and has accumulated depreciation of $70,000.The business exchanges the truck for a new one.The new truck has a market value of $120,000 and the business pays $100,000 cash.Assume the exchange has commercial substance.Prepare the journal entry to record this transaction.

A Truck Was Acquired for $100,000 and Has Accumulated Depreciation