During the Current Year,a Company Exchanged an Old Truck Costing

question 215

Essay

During the current year,a company exchanged an old truck costing $58,000 with accumulated depreciation of $52,000 for a new truck.The new truck had a cash price of $80,000 and the company received a $16,000 trade-in allowance on the old truck with the balance of $64,000 paid in cash.Prepare the journal entry to record the exchange,assuming the transaction has commercial substance.

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Definitions:

Compressed Workweeks

A work schedule that allows an employee to work the required hours for the week in fewer days than the traditional five-day workweek.

Telecommuting

Working from home or outside the office at least part of the time.

Part-Time Work

Employment with fewer hours per week than a full-time job, often offering flexibility but with fewer benefits than full-time positions.

Compressed Workweek

A work schedule that allows a full-time job to be completed in less than five days.