I am in the process of structuring how the process of "Trade-In's" are handled at my company. I am pretty firm in my knowledge that a LKE or Trade-in is a transaction that happens between 1 seller and 1 buyer. Selling a vehicle to company A and Purchasing a Vehicle from company B does not qualify as a trade-in. Also, there seems to be a lag between the purchase of the new and the sale of the old. The concept seems to be that they have a capital project that was approved using a trade-in, but the transaction in reality, in my mind is two separate transactions.
I am able to find lots of information on how to book these transactions, but I want an official FASB code that supports my position. For tax there is a deferred LKE, but that is intended for real estate and is a 45 day make between the two transactions..
Your assistance is appreciated.
I am able to find lots of information on how to book these transactions, but I want an official FASB code that supports my position. For tax there is a deferred LKE, but that is intended for real estate and is a 45 day make between the two transactions..
Your assistance is appreciated.