Buffalo Company purchased a heavy-duty truck on July 1, 2014, for $30,360. It was estimated that it would have a useful life of 10 years and then would have a trade-in value of $6,480. The company uses the straight-line method. It was traded on August 1, 2018, for a similar truck costing $42,189; $16,699 was allowed as trade-in value (also fair value) on the old truck and $25,490 was paid in cash. A comparison of expected cash flows for the trucks indicates the exchange lacks commercial substance. What is the entry to record the trade-in

The answer is given below;

Explanation:

Cost of Truck July 1,2014                 $30,360

Accumulated Depreciation(30,360-6,480)/10=2,388*4=($9,552)

Written Down Value as at August 1 ,2018    $20,808

Truck New   Dr.$42,189

Loss on Old Truck ($20,808-16,699) Dr.$4,109

Accumulated Depreciation                 Dr.$9,552

Cash                                                     Cr.$25,490

Old Truck-Cost                                     Cr.$30,360

There was a loss of $4,109 on old truck as it was traded below its written down value.                      

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed

answer; schedule c;