Question: Assume the same information as BE10-15, except that the fair value of the old delivery equipment is $33,000. Prepare the entry to record the exchange.

Assume the same information as BE10-15, except that the fair value of the old delivery equipment is $33,000. Prepare the entry to record the exchange.
In BE10-15, Olathe Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,000 (cost $61,000 less accumulated depreciation $30,000). Its fair value is $24,000, and cash of $5,000 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance.

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