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ACCT 3551 Goodman Company acquired a truck from Harmes Company in exchange for a machine

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June 7th, 2024

Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is determined to have commercial substance. The machine cost $30,000, has a book value of $6,000, and has a market value of $9,000. The truck has a cost of $12,000 and a book value of $8,000 on Harmes’ books.Prepare journal entries for Goodman and Harmes to record the exchange.

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