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Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1. Company made a $90,000 cash down payment and traded

Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1.

Company made a $90,000 cash down payment and traded an old delivery truck. The old delivery truck had a fair value of $25,000, a book value of $10,000, and an initial cost of $110,000.

Assume that the exchange had commercial substance.

Determine the capitalized cost of the new delivery truck.

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