Assignment Task: Presented below are two independent transactions.
1. Ima Knucklehead exchanged old trucks (cost $75,000 less $22,000 accumulated depreciation) plus cash of $17,000 for new trucks. The old trucks had a fair market value of $39,000.
2. Yura Dingaling trades its used machine (cost $14,000 less $6,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair market value of $12,000), Yura also paid cash of $5,000.
Required:
(a) Prepare the entry to record the exchange of similar assets by Ima Knucklehead.
(b) Prepare the entry to record the exchange of similar assets by Yura Dingaling.