A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts concerning the trade-in are as follows: Cost of truck traded Accumulated depreciation to date of exchange Fair market value of truck traded Cash paid by Blossom Fair market value of truck acquired $108,000 38,000 87,000 17,000 104,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 8EA: Using the information from EA7, calculate depreciation using the straight-line method.
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Asset 4
A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more
comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts
concerning the trade-in are as follows:
Cost of truck traded
Accumulated depreciation to date of exchange
Fair market value of truck traded
Cash paid by Blossom
Fair market value of truck acquired
$108,000
38,000
87,000
17,000
104,000
Transcribed Image Text:Asset 4 A truck was acquired by trading in an older truck that has the same value in use. The newer truck has options that will make it more comfortable for the driver; however, the company remains in the same economic position after the exchange as before. Facts concerning the trade-in are as follows: Cost of truck traded Accumulated depreciation to date of exchange Fair market value of truck traded Cash paid by Blossom Fair market value of truck acquired $108,000 38,000 87,000 17,000 104,000
Acquisition of Asset 4
Vehicles
Accumulated Depreciation - Vehicles
Cash
108,000
38,000
17,000
129,000
Transcribed Image Text:Acquisition of Asset 4 Vehicles Accumulated Depreciation - Vehicles Cash 108,000 38,000 17,000 129,000
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