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Rudiy27
3 years ago
6

Cliff Company traded in an old truck for a new one. The old truck had a cost of $75,000 and accumulated depreciation of $60,000.

The new truck had an invoice price of $125,000. Huffington was given a $12,000 trade-in allowance on the old truck, which meant they paid $113,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck
Business
1 answer:
LuckyWell [14K]3 years ago
7 0

Answer: $125,000

Explanation:

If the above transaction in the question has commercial substance, the recorded value of the new truck will be the trade in allowance of $12,000 on the old truck in addition to the $113,000 that was paid to get the new truck.

Mathematically expressed, this will be:

= $113,000 + $12,000

= $125,000

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In 2021-22, the GBP-USD trade charge is forecast to understand with the aid of four.6%, with £1 returning US$1.3679 on common during the 12 months. on the time of guide, the BoE day-by-day spot exchange charge was £1 same to US$1.3404 on 02 March 2022.

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