Asset exchange with commercial substance
In 2021, Malawi Inc. exchanged equipment for two delivery trucks. The equipment had been purchased for $ 95,000 ten years ago and has since been fully depreciated. While the equipment was recently appraised at $ 22,000, a reliable valuation for the trucks was not available. This transaction has commercial substance.
Instructions
Prepare the journal entry to record the exchange.

Question

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The Answer of Asset exchange with commercial substance
In 2021, Malawi Inc. exchanged equipment for two delivery trucks. The equipment had been purchased for $ 95,000 ten years ago and has since been fully depreciated. While the equipment was recently appraised at $ 22,000, a reliable valuation for the trucks was not available. This transaction has commercial substance.
Instructions
Prepare the journal entry to record the exchange.

Asset Exchange with Commercial Substance