Question
On April 1, 2020, the Kentucky Company exchanged a truck for a forklift. The Kentucky Company also gave $2,500 cash. The exchange lacks commercial substance.
On April 1, 2020, the Kentucky Company exchanged a truck for a forklift. The Kentucky Company also gave $2,500 cash. The exchange lacks commercial substance. On April 1, 2020, the truck had a fair value of $14,000. Its cost was $24,000 and its accumulated depreciation at April 1, 2020 was $13,800. The fair value of the forklift on April 1, 2020 was $16,500.
Required: At what value should the forklift be recorded on the Kentucky Companys books at April 1, 2020?
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Auditing Today
Authors: Emile Woolf
3rd Edition
013052168X, 9780130521682
