pless help exam

Question 1 Not yet answered On December 1, 2015, Kelso Company acquired a new delivery truck in exchange for an old delivery truck that it had acquired in 2012. The old truck was purchased for $35,000 and had a book value of $13,300. On the date of the exchange, the old truck had a fair value of $14,000. In addition, Kelso paid $45,500 cash for the new truck, which had a list price of $63,000. The exchange lacked commercial substance. At what amount should Kelso record the new truck for financial accounting purposes? Marked out of 1.00 Flag question Select one: o a. 545,500. b. $63,000. c. $59,500. d. $58,800 On January 1, 2008, Forbes Company purchased equipment at a cost of $50,000. The equipment was estimated to have a residual value of $5,000 and it is being depreciated over eight years under the sum-of-the-years'-digits method. What should be the charge for depreciation of this equipment for the year ended December 31, 2015? Select one: O a. $1,250 b. $1,389 C. $2,500 O d. $5,625