Long Trucking Corporation is a medium-sized trucking comIn the “All About You” feature, you learned about actions that were taken to strengthen Canada’s copyright law and the radical changes in technology that drove the need to update the law. You have recently graduated from a music program and have composed two songs that you believe a recording artist may produce. You are wondering how you can best get copyright protection for your songs. pany with trucks that are driven across North America. The company owns large garages and equipment to repair and maintain the trucks. Ken Bond, the controller, knows that assets can be exchanged with or without money being paid or received. The company is considering exchanging a semi-truck with a carrying amount of $100,000 (original cost $165,000) for a garage in a rural area where the company can operate a branch of the repair operation. The garage has a fair value of $90,000 and the semi-truck has a fair value of $75,000. Long Trucking Corporation will also pay the seller an additional $15,000. 

Instructions 

Write an email to Jason Long (the owner) that explains 

(1) The financial impact of the exchange on assets and profit and 

(2) How the transaction should be recorded in the accounting records. 

Suggest appropriate depreciation methods to use for the garage for future recording.