Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $15,000 for the new truck. The new truck should be reported on the general fund financial statements at A.) $0. B.) $42,000. C.) $44,000. D.) $41,000

Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $15,000 for the new truck. The new truck should be reported on the general fund financial statements at A.) $0. B.) $42,000. C.) $44,000. D.) $41,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 39P

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Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $15,000 for the new truck. The amount of gain or loss that should be recognized on this transaction in the general fund financial statements is: A.) $0. B.) $1,000 loss. C.) $4,000 gain. D.) $15,000 loss
Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $16,000 for the new truck. The new truck should be reported on the government-wide financial statements at A.) $15,000 B.) $42,000 C.) $44,000 D.) $41,000
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