Question: Kling Company exchanged a used machine with a book value of $26, 500 (cost $54, 300 less $27, 800 accumulated depreciation) and cash of $8,

Kling Company exchanged a used machine with a book value of

Kling Company exchanged a used machine with a book value of $26, 500 (cost $54, 300 less $27, 800 accumulated depreciation) and cash of $8, 300 for a delivery truck. The machine is estimated to have a fair market value of $35, 700. The cash flows related to the truck will be different from the cash flows generated from the use of the machine. Prepare the journal entry to record the exchange on the books of the Kling Company. (Record debits first, then credits. Exclude explanations from any journal entries.)

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