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wariber [46]
3 years ago
6

Cliff Company traded in an old truck for a new one. The old truck had a cost of $200,000 and accumulated depreciation of $40,000

. The new truck had an invoice price of $195,000. Huffington was given a $153,000 trade-in allowance on the old truck, which meant they paid $42,000 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?
Biology
1 answer:
masya89 [10]3 years ago
4 0

Answer:

1,95,000 dollars

Explanation:

The recorded value of any commodity depends on the following elements:

- The instance value of the commodity on a page

- Additional value paid for buying the commodity and

- Other expenditure related to purchase of commodity

Here in this case, the recorded value of the truck is equal to the sum of trade allowance and additional payment to acquire new truck

Thus, recorded value of truck

= 1,53,000 + 42,000\\= 1, 95, 000

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