On October 6, 2023, Western Farms Co. traded in an old tractor for a new one, receiving a $77,000 trade-in allowance and paying the remaining $183,000 in cash. The old tractor cost $228,000, and straight-line depreciation of $124,000 had been recorded as of October 6, 2023. Assume the fair value of the new tractor was equal to the trade-in allowance of the old tractor plus the cash paid. Required: a. What was the book value of the old tractor?

On October 6, 2023, Western Farms Co. traded in an old tractor for a new one, receiving a $77,000 trade-in allowance and paying the remaining $183,000 in cash. The old tractor cost $228,000, and straight-line depreciation of $124,000 had been recorded as of October 6, 2023. Assume the fair value of the new tractor was equal to the trade-in allowance of the old tractor plus the cash paid. Required: a. What was the book value of the old tractor?

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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