Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2019. Rizzo's truck cost $22,000. It has accumulated depreciation of $15,000 and a fair value of $3,000. Overland's truck cost of $10,000. It has accumulated depreciation of $8,000 and a fair value of $3,000. The transaction has commercial substance.
- Prepare the entry to record the exchange of assets by Mercy Co.
- Journalize the exchange for Overland's Express Delivery.