(ASSUMED TRANSACTION HAVE COMMERCIAL SUBSTANCE)

1) Asset Exchanged Without Cash Consideration

Book Value Of Old Asset (1000-850) =150

Fair Value (400)-Book Value (150) = Gain $250

The Asset Should Be Recorded At Fair Value. Because This Amount Is More Than The Net Book Value Of The Old Truck, A Gain Is Recorded For The Difference:

Accumulated Depreciation 850

New Asset                                   400

     To Gain                                               250

      To Old Asset                                   1000

(To Remove All Accounts Related To Old Asset, Setup New Asset At Its Fair Vale, And Record The Balance Gain)

2)CASH AMOUNT $300

CASH (300)+ FV OF ASSET(400)=700

700-BOOK VALUE(150)=550 (gain)

Accumulated Depreciation 850

Cash                                  300

New Asset                          400

     To Gain                                               550

      To Old Asset                                      1000

3)cash 80

80+400=470

470-150=320(gain)

Accumulated Depreciation 850

Cash                                  80

New Asset                          400

     To Gain                                               320

      To Old Asset                                      1000

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