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never [62]
3 years ago
12

Amble Inc. exchanged a truck with a book value of $12,000 and a fair value of $20,000 for a truck and $5,000 cash. The exchange

has commercial substance. At what amount should Amble record the truck received?a.$12,000b.$15,000c.$20,000d.$25,000
Business
1 answer:
klasskru [66]3 years ago
8 0

Answer:

B. $15,000

Explanation:

First, we should understand that there is a difference between the book value and the fair value. This difference will either be a gain or a loss.

Secondly, for the new truck/asset; it should be recognized based on the subtraction of the additional amount paid for the new asset from the fair value of asset exchanged.

Therefore,

The Value of the New Asset= Exchanged Asset's fair value - Consideration paid for the new asset

= The value of the new asset = $20,000 - $5,000= $15,000

The Amount to be recorded for the truck received is $15,000

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Correct answer choice is:

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Hitman42 [59]

Answer:

$14 million

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3 years ago
Inthe 1920's, the value of the German mark fell dramatically. in June 1922, a U.S. dollar could buy 320 marks; by December of th
muminat

Answer:

The answer is C: Hyperinflation

Explanation:

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5 0
3 years ago
What’s the answer???
Yuliya22 [10]

Answer:

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Explanation:

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