Flint Corporation traded a used truck (cost $21,600, accumulated depreciation $19,440) for a small computer with a fair value of $3,564. Flint also paid $540 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance

Dr Computer 2,700

Dr Accumulated depreciation - truck 19,440

    Cr Truck - 21,600

    Cr Cash 540

Explanation:

Since the transaction lacked commercial substance, Flint must record the computer at the asset value of the truck plus the additional cash given (boot payment).

computer's basis = $21,600 - $19,440 + $540 = $2,700

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

answer; balance sheets;