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Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1. Company made a $20,000 cash down payment and issued 10,000 shares of its no par common stock to acquire the truck. The fair value of the common stock was not readily determinable on January 1, Year 1. Determine the capitalized cost of the new delivery truck

Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1. Company made a $20,000 cash down payment and issued 10,000 shares of its no par common stock to acquire the truck. The fair value of the common stock was not readily determinable on January 1, Year 1. Determine the capitalized cost of the new delivery truck

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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Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1. Company made a $20,000 cash down payment and issued 10,000 shares of its no par common stock to acquire the truck. The fair value of the common stock was not readily determinable on January 1, Year 1. Determine the capitalized cost of the new delivery truck
Transcribed Image Text:Company acquired a delivery truck with a fair value of $120,000 on January 1, Year 1. Company made a $20,000 cash down payment and issued 10,000 shares of its no par common stock to acquire the truck. The fair value of the common stock was not readily determinable on January 1, Year 1. Determine the capitalized cost of the new delivery truck
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