Mr. Jones, the owner of a small service business, decided to give his personal truck to the business permanently. He believes the truck is worth $40,000, although Kelly Blue Book has a fair market value of $25,000. You're the accountant and, Mr. Jones tells you to record the truck on the books for $40,000. Question: Which value will you use and why?
Mr. Jones, the owner of a small service business, decided to give his personal truck to the business permanently. He believes the truck is worth $40,000, although Kelly Blue Book has a fair market value of $25,000. You're the accountant and, Mr. Jones tells you to record the truck on the books for $40,000. Question: Which value will you use and why?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr. Jones, the owner of a small service business, decided to give his personal truck to the business permanently. He believes the truck is worth $40,000, although Kelly Blue Book has a fair market value of $25,000. You're the accountant and, Mr. Jones tells you to record the truck on the books for $40,000.
Question: Which value will you use and why?
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