(Answered) Asset exchange with commercial substancein 2015 malawi inc

Accounting

Asset exchange with commercial substance

In 2015, Malawi Inc. exchanged equipment for two delivery trucks. The equipment has been purchased for $95,000 ten years ago and has since been fully depreciated. While the equipment was recently appraised at $22,000 a reliable valuation for the trucks was not available. This transaction has commercial substance.

Instructions

Prepare the journal entries to record the exchange.

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