Question: During the current year, a com exchanged an old truck costing $58,000 with accumulated depreciation of $52,000 for a new truck. The new truck had

During the current year, a com exchanged an old truck costing

During the current year, a com 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 under the two assumptions below: (1) The transaction lacks commercial substance. (2) The transaction has commercial substance

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