Global was required to pay the car dealer 20000 in cash


Question - Global, Inc., owns a delivery truck which initially cost $30,000. After depreciation of $15,000 had been deducted, the truck was traded-in on a new truck that cost $60,000. Global was required to pay the car dealer $20,000 in cash. What is Global's basis for the new truck?

a. $0.

b. $35,000.

c. $60,000.

d. $75,000.

e. None of the above.

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Accounting Basics: Global was required to pay the car dealer 20000 in cash
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