Twilight Corporation is a construction company that owns a truck used to transport construction materials to job sites. Twilight Corporation paid $63,500 to purchase this truck 2 years ago. As of October 4, 2021, Twilight Corporation recorded accumulated depreciation of $20,300 on this truck. As of October 4, 2021, Twilight’s truck had a fair value of $42,305. On October 4, 2021, Twilight exchanged its truck for a truck owned by Daylight Company. Assume that the fair value of the new truck is $44,325. Assume also that Twilight Corporation received $895 from Daylight Company as part of the truck exchange. Required Prepare the journal entry on Twilight Corporation’s books to record the exchange, assuming that the transaction lacks commercial substance. Preparethe journal entry on Twilight Corporation’s books to record the exchange, assuming the transaction is determined to have commercial substance. introdutionof Accounting 1
Twilight Corporation is a construction company that owns a truck used to transport construction materials to job sites. Twilight Corporation paid $63,500 to purchase this truck 2 years ago. As of October 4, 2021, Twilight Corporation recorded
Preparethe journal entry on Twilight Corporation’s books to record the exchange, assuming the transaction is determined to have commercial substance.
introdutionof Accounting 1
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