CHENG COMPANY TRADED A USED TRUCK FOR A NEW TRUCK. THE USED TRUCK COST $30,000 AND HAS ACCUMULATED DEPRECIATION OF $27,000. THE NEW TRUCK IS WORTH $37,000. CHENG ALSO MADE A CASH PAYMENT OF $36,000. PREPARE CHENG'S ENTRY TO RECORD THE EXCHANGE. (THE EXCHANGE LACKS COMMERCIAL SUBSTANCE.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...
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CHENG COMPANY TRADED A USED TRUCK FOR A NEW TRUCK.
THE USED TRUCK COST $30,000 AND HAS ACCUMULATED
DEPRECIATION OF $27,000. THE NEW TRUCK IS WORTH $37,000.
CHENG ALSO MADE A CASH PAYMENT OF $36,000. PREPARE
CHENG'S ENTRY TO RECORD THE EXCHANGE. (THE EXCHANGE
LACKS COMMERCIAL SUBSTANCE.)
Transcribed Image Text:CHENG COMPANY TRADED A USED TRUCK FOR A NEW TRUCK. THE USED TRUCK COST $30,000 AND HAS ACCUMULATED DEPRECIATION OF $27,000. THE NEW TRUCK IS WORTH $37,000. CHENG ALSO MADE A CASH PAYMENT OF $36,000. PREPARE CHENG'S ENTRY TO RECORD THE EXCHANGE. (THE EXCHANGE LACKS COMMERCIAL SUBSTANCE.)
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