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  3. navajo corp traded a used truck (cost $20,000, acc

Navajo Corp traded a used truck (cost $20,000, accum depr $18,000) for a small computer...

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Accounting

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Navajo Corp traded a used truck (cost $20,000, accum depr $18,000) for a small computer worth $3,500. Navajo also received $500 in the transaction. The old truck had a fair value of $4,000. Prepare the journal entry to record the exchange for Navajo. (the exchange LACKS commercial substance) Accounts Debit Credit Computer (new) [ Select ] Accum. Depreciation [Select] (old truck) Cash [ Select ] Truck (old) [ Select ] Gain on Disposal [ Select ]

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