Cliff Company traded in an old truck for a new one. The old truck had a cost of $110,000 and accumulated depreciation of $66,000. The new truck had an invoice price of $48,000. Huffington was given a $38,000 trade-in allowance on the old truck, which meant they paid $10,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck?
|Market Value of New truck||$ 48,000.00|
|Book Value of old truck(110000-66000)||$ 44,000.00|
|Cash Paid||$ 10,000.00|
|In the Given Question Transaction Has Commercial Subtance|
|& There is a Loss on the Exhange|
|New Assets will be Recorded At Its MARKET VALUE that Is $48000|
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