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A company trades a car which cost $22,000 and has accumulated depreciation of $3,000, for a new car which has a list price of $18,600. The dealer allows a $17,500 trade-in, and $1,100 is paid in cash. The car being traded-in could be sold for $17,300 in the well established second-hand market. The new car should be recorded on the books at: Multiple Choice O $18.400 None of the other alternatives are correct $18,100 $17,000 $18,600

A company trades a car which cost $22,000 and has accumulated depreciation of $3,000, for a new car which has a list price of $18,600. The dealer allows a $17,500 trade-in, and $1,100 is paid in cash. The car being traded-in could be sold for $17,300 in the well established second-hand market. The new car should be recorded on the books at: Multiple Choice O $18.400 None of the other alternatives are correct $18,100 $17,000 $18,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company trades a car which cost $22,000 and has accumulated depreciation of $3,000, for a new car which has a list price of $18,600. The dealer allows a $17,500 trade-in, and $1,100 is paid in cash. The car being traded-in could be sold for $17,300 in the well established second-hand market. The new car should be recorded on the books at: Multiple Choice $18.400 None of the other alternatives are correct $18,100 $17,000 $18,600
Transcribed Image Text:A company trades a car which cost $22,000 and has accumulated depreciation of $3,000, for a new car which has a list price of $18,600. The dealer allows a $17,500 trade-in, and $1,100 is paid in cash. The car being traded-in could be sold for $17,300 in the well established second-hand market. The new car should be recorded on the books at: Multiple Choice $18.400 None of the other alternatives are correct $18,100 $17,000 $18,600
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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