Logan Logistics Ltd. has a fleet of delivery vehicles that are traded in when they reach 200,000 km. Truck #3846 is traded in for a new identical model #9929. The accounting records show the following data for this transaction: #3346 cost = $80,000 #3346 accumulated depreciation = $66,420 Cash paid by Logan to “seal the deal” = $61,250 Sticker price (Manufacturers Suggested Retail Price) for # 9929 = $92,000 Questions: 1. What amount should #9929 be capitalized at? $ 2. What gain (loss) will Condor show in accounting for the disposal of the asset? If negative use the minus sign "-" $
Logan Logistics Ltd. has a fleet of delivery vehicles that are traded in when they reach 200,000 km. Truck #3846 is traded in for a new identical model #9929. The accounting records show the following data for this transaction: #3346 cost = $80,000 #3346 accumulated depreciation = $66,420 Cash paid by Logan to “seal the deal” = $61,250 Sticker price (Manufacturers Suggested Retail Price) for # 9929 = $92,000 Questions: 1. What amount should #9929 be capitalized at? $ 2. What gain (loss) will Condor show in accounting for the disposal of the asset? If negative use the minus sign "-" $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Logan Logistics Ltd. has a fleet of delivery vehicles that are traded in when they reach 200,000 km. Truck #3846 is traded in for a new identical model #9929. The accounting records show the following data for this transaction:
#3346 cost = $80,000
#3346
Cash paid by Logan to “seal the deal” = $61,250
Sticker price (Manufacturers Suggested Retail Price) for # 9929 = $92,000
Questions:
1. What amount should #9929 be capitalized at? $
2. What gain (loss) will Condor show in accounting for the disposal of the asset? If negative use the minus sign "-" $
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