Larkspur Corporation traded a used truck (cost $26,400, accumulated depreciation $23,760) for a small computer with a fair value of $4,356. Larkspur also paid $660 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)
Larkspur Corporation traded a used truck (cost $26,400, accumulated depreciation $23,760) for a small comput
Expert Answer
| Equipment | 4356 | |
| Accumulated Depreciation—Trucks | 23760 | |
| Trucks | 26400 | |
| Cash | 660 | |
| Gain on Disposal of Trucks | 1056 | |
