Non-monetary transaction without commercial substance
Malawi Auto traded one of its used trailers (cost $ 40,000, accumulated depreciation $ 36,000) for another used trailer with a fair value of $ 6,400. Malawi also paid $ 600 to complete the transaction.
Instructions
Assuming the transaction lacks commercial substance, prepare the journal entry to record the exchange.

Question

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The Answer of Non-monetary transaction without commercial substance
Malawi Auto traded one of its used trailers (cost $ 40,000, accumulated depreciation $ 36,000) for another used trailer with a fair value of $ 6,400. Malawi also paid $ 600 to complete the transaction.
Instructions
Assuming the transaction lacks commercial substance, prepare the journal entry to record the exchange.

Non-Monetary Transaction Without Commercial Substance