Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade.Nate receives a delivery truck and gives up a piece of machinery.The fair value and book value of the machinery were $27,000 and $25,000 (original cost of $35,000 less accumulated depreciation of $10,000),respectively.Since the delivery truck was worth $32,000,Nate paid an additional $5,000 in cash to Lizzy.Record the exchange for Nate's Hot Dogs.

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The Answer of Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade.Nate receives a delivery truck and gives up a piece of machinery.The fair value and book value of the machinery were $27,000 and $25,000 (original cost of $35,000 less accumulated depreciation of $10,000),respectively.Since the delivery truck was worth $32,000,Nate paid an additional $5,000 in cash to Lizzy.Record the exchange for Nate's Hot Dogs.

Nate's Hot Dogs Exchanges Long-Term Assets with Lizzy's Lemonade