Question: The quesiton is asking how to write the journal entry to record the exchange. It also mentions that the exchange does not have commercial substance.

The quesiton is asking how to write the journal entry to record the exchange. It also mentions that the exchange does not have commercial substance. Some parts of the journal entry is given.

Tulip exchanged a truck for two vans. Relevant information is below: Historical cost Accumulated depreciation Fair value Truck $80,000 14,000 62,000 Vans $60,000 24,000 45,000 Required: Write the journal entry for Tulip to record the exchange. The exchange does not have commercial substance. Account Debit Credit Vans Accumulated depreciation - truck 14,000 Truck 80,000

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