Pensacola Inc. purchased equipment on January 1, 2016 for $135,000. Aer 3 years Pensacola exchanged the equoment tor atuck tom Man Inc exchange. The balance in the Accumulated Depreciation account at the time of the eechange was $75.00. Assume the exchange lacks commercial substance At the time of the exchange, the fair value of the equipment was $77000 and the fair value of the truck was $57000 Mami paid 52000 cashboot t Perscls What is the cost basis of the truck acquired by Pensacola? onary $44,415 $52,585 O $57,000 O $40,000 O None of the above

Pensacola Inc. purchased equipment on January 1, 2016 for $135,000. Aer 3 years Pensacola exchanged the equoment tor atuck tom Man Inc exchange. The balance in the Accumulated Depreciation account at the time of the eechange was $75.00. Assume the exchange lacks commercial substance At the time of the exchange, the fair value of the equipment was $77000 and the fair value of the truck was $57000 Mami paid 52000 cashboot t Perscls What is the cost basis of the truck acquired by Pensacola? onary $44,415 $52,585 O $57,000 O $40,000 O None of the above

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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