Following are journal entry examples to reflect the acquisition of an asset that includes a trade-in. Form 8594 is a tax document required in certain business sales where the buyer acquires assets rather than stock or equity.This section provides guidance on accounting and reporting of Capital Assets in the institution's general ledger and the Annual Financial Report (AFR). Asset purchase agreements are a useful way to: Carve out certain assets of a business without taking on liabilities or debt obligations. This valuation shall be determined as of the date the credit union takes legal title to or physical possession of the property, whichever event occurs first. Asset impairment losses are not accounted for in governmental fund financial statements. Recognition and Measurement. Capital Assets may be acquired via purchase, donation, construction or transfer. I'm also adding this article to learn how to track depreciation in the program using journal entries: Depreciate assets in QuickBooks Online. Buyers get a step-up basis when acquiring assets through an asset purchase transaction.