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An old truck, which cost $54,000 and was one-half depreciated, was exchanged for a tractor with a fair value of $58,000; $30,000 cash was paid
An old truck, which cost $54,000 and was one-half depreciated, was exchanged for a tractor with a fair value of $58,000; $30,000 cash was paid for the tractor. The exchange had commercial substance. At what amount should the tractor be recorded?
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The first step is to calculate the book value ie the carrying value of the old truck Book value of o...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
