What amount of profit should the company recognise in the second year.

A truck costs $88,000 when new and has accumulated depreciation of $70,000. Suppose Falcon Hauling exchanges the truck for a new truck. The new truck has a market value of $65,000, and Falcon pays cash of $40,000. Assume the exchange has commercial substance. What is the result of this exchange?

Please provide the correct solution to this financial accounting question using valid principles.

Please provide the solution to this general accounting question with accurate financial calculations.

What was the cost of goods sold for year 1?

Mistral Inc. reported $85,000 in net profit for the year using absorption costing. The company had no units in beginning inventory, planned and actual production was 24,000 units and sales were 20,500 units during the year. Variable manufacturing costs were $25 per unit and total budgeted fixed manufacturing overhead was $120,000. There was no underapplied or overapplied overhead reported during the year. Determine the net profit under variable costing.

Mistral Inc. reported $85,000 in net profit for the year using absorption costing. The company had no units in beginning inventory, planned and actual production was 24,000 units and sales were 20,500 units during the year. Variable manufacturing costs were $25 per unit and total budgeted fixed manufacturing overhead was $120,000. There was no underapplied or overapplied overhead reported during the year. Determine the net profit under variable costing. Help

How can I solve this financial accounting problem using the appropriate financial process?

I need the correct answer to this general accounting problem using the standard accounting approach.