Question: Exercise 3: (5 marks) During the current year, ABC Co, trades an old truck that has a book value of $90,000 (original cost $140,000 less

Exercise 3: (5 marks) During the current year, ABC Co, trades an old truck that has a book value of $90,000 (original cost $140,000 less accumulated depreciation $50,000 ) for a new truck from XYZ Co. The following information is also available. Required: a) Assuming that this exchange is considered to have commercial substance, prepare the journal entry on the books of ABC Co. b) Assuming that this exchange lacks commercial substance for ABC Co., how would your answer change for requirement (a) above

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