Flint Corporation traded a used truck (cost $20,400, accumulated depreciation $18,360) for a small computer with a fair value of $3,366. Flint also paid $510 in the transaction. Required:
Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.