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A company truck was traded for a new truck, which was paid for in cash....

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Accounting

A company truck was traded for a new truck, which was paid for in cash. The old used truck cost $3800.00, and on September 30 (the end of the quarter) had depreciated $2200.00. Straight-line depreciation on the old truck is $40.00 per month. The new truck listed for $19950 (taxes and destination charges included), and Kinder Auto Sales allowed a $3,000.00 trade-in allowance on the purchase of the new vehicle. The trade has no commercial value and no gain or loss will be recognized on this transaction. Two entries are required for the trade-in.

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