A firm trades in an old truck with a fair value of $25,000 and a carrying value of $20,000 for new truck that has a list price of $29,000. To complete the transaction, the firm gives the dealer $1,000 cash. At what value will the firm record the new truck? A. $29,000 B. $1,000 C. $26,000 D. $25,000

A firm trades in an old truck with a fair value of $25,000 and a carrying value of $20,000 for new truck that has a list price of $29,000. To complete the transaction, the firm gives the dealer $1,000 cash. At what value will the firm record the new truck? A. $29,000 B. $1,000 C. $26,000 D. $25,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 15RE: GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells...

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Question

A firm trades in an old truck with a fair value of $25,000 and a carrying value of $20,000 for new truck that has a list price of $29,000. To complete the transaction, the firm gives the dealer $1,000 cash. At what
value will the firm record the new truck?
A. $29,000
B. $1,000
C. $26,000
D. $25,000

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