Wendell corporation exchanged an old truck, Accounting Basics

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Wendell Corporation exchanged an old truck and $25,500 cash for a new truck.
The old truck had a book value of $6,000 (original cost of $25,000 less $19,000 in accumulated depreciation) and a fair value of $7,700.
Required:
1. Prepare the journal entry to record the exchange. Assume the exchange has commercial substance.
2. Prepare the journal entry to record the exchange assuming that the exchange lacks commercial substance.


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