Pensacola Inc. purchased equipment on January 1, 2016 for $135,000.After 3 years Pensacola exchanged the equioment for a truck from Mami, inc. in a exchange. The balance in the Accumulated Depreciation account at the time of the exchange was $75,000 Assume the exchange lacks commercial substance. At the time of the exchange, the fair value of the equipment was $77,000 and the fair value of the truck was $57,000. Miami paid $20,000 cashvboot to Pensacola monetan What is the cost basis of the truck acquired by Pensacola? $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.After 3 years Pensacola exchanged the equioment for a truck from Mami, inc. in a exchange. The balance in the Accumulated Depreciation account at the time of the exchange was $75,000 Assume the exchange lacks commercial substance. At the time of the exchange, the fair value of the equipment was $77,000 and the fair value of the truck was $57,000. Miami paid $20,000 cashvboot to Pensacola monetan What is the cost basis of the truck acquired by Pensacola? $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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Pensacola Inc. purchased equipment on January 1, 2016 for $135,000. Ater 3 years Pensacola exchanged the equipment for a truck from Mam, Inc in a non-monetary exchange. The balance in the Accumulated Depreciation account at the time of the exchange was $75,000. Assume the exchange lacks commercial substance. At the time of the exchange, the fair value of the equipment was $77 000 and the fair vallue of the truck was $57,000. Miami paid 520,000 cashtoot to Pensacola What is the cost basis of the truck acquired by Pensacola? O $44,415 $52,585 $57,000 O $40,000 O None of the above
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