question archive A used delivery truck was traded in for a new truck
A used delivery truck was traded in for a new truck
Subject:AccountingPrice: Bought3
A used delivery truck was traded in for a new truck. Information relating to the trucks follows:
Used truck:
Cost Php. 1,600,000
Accumulated depreciation 1,200,000
Estimated current fair value 320,000
New truck:
List price Php. 2,000,000
Cash price w/o trade in 1,900,000
Case price w/ trade in 1,560,000
The amount that should be capitalized as the cost of the new truck is:
a. Php. 1,560,000
b. Php. 1,960,000
c. Php. 1,900,000
d. Php. 1,880,000
