Crowe Company purchased a heavy-duty truck on July1, 2014, for $30,000. It was estimated that it would have auseful life of 10 years and then would have a trade-invalue of $6,000. The company uses the straight-linemethod. It was traded on August 1, 2018, for a similartruck costing $42,000; $16,000 was allowed as trade-invalue (also fair value) on the old truck and $26,000 waspaid in cash. A comparison of expected cash flows for thetrucks indicates the exchange lacks commercial substance.What is the entry to record the trade-in?

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