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Sunland Inc. and Carla Vista Co. have an exchange with commercial substance. The asset given...

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Accounting

Sunland Inc. and Carla Vista Co. have an exchange with commercial substance. The asset given up by Sunland has a book value of $76000 and a fair value of $93000. The asset given up by Carla Vista has a book value of $113000 and a fair value of $106000. Boot of $13000 is received by Carla Vista.
Carla Vista's journal entry to record the exchange will include
a debit to the asset account for $113000.
a debit to Loss on Disposal of $7000
a credit to the asset account for $76000
a debit to Cash of $7000.
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