A truck costing 45000 and having an estimated salvage value


A truck costing $45,000 and having an estimated salvage value of $4,500 and an original life of five years is exchanged for a new truck. The cash price of the new truck is $57,000, and a trade-in allowance of $22,500 is received. The old truck has been depreciated for three years using the straight-line method. The new truck would be recorded at:

a.   $55,200

b.   $57,000

c.   $34,500

d.   $43,200

e.   None of the above

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Financial Accounting: A truck costing 45000 and having an estimated salvage value
Reference No:- TGS01105769

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