Trying to understand a subject "exchanges that lack comm'l substance.  The question given as practice was -

Co A: Truck A - cost  $10k, Acc dep $8k, FMV $3k

Co B: Truck B - BV $15K

In addition to Truck A, Co A paid Cash for $10k in the exchange

What is the amt of the value of Truck B received?

My thoughts: Since there is boot paid, but the exchange lacks comm'l substance, there is no gain recognized- then the value of the asset received by Co A should be $12k. 

Since transaction lacks commerical substance, on A's books, since boot is paid as opposed to received, no gain is recognized.  Losses, however, are recognized, but not applicable in this case since FMV of asset given up, 3,000, exceeds book value of asset given up, 2,000. The value of the asset received would be a plug figure. So I think the JE would look like this:  so yep :)  I have a great chart from Yaeger CPA review :)

New Truck      12,000

Accum Deprec   8,000

     Truck         & nbsp;          10,000

      Cash         &n bsp;         &n bsp;10,000