XYZ Floral Company has a delivery truck that is being sold after 5 years of use. The current book value of the delivery truck is $5,000. If XYZ Floral Company sells the delivery truck for $7,000, what is the impact of this transaction?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 14P
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What is the impact of this transaction ?

XYZ Floral Company has a delivery truck
that is being sold after 5 years of use. The
current book value of the delivery truck is
$5,000. If XYZ Floral Company sells the
delivery truck for $7,000, what is the impact
of this transaction?
Transcribed Image Text:XYZ Floral Company has a delivery truck that is being sold after 5 years of use. The current book value of the delivery truck is $5,000. If XYZ Floral Company sells the delivery truck for $7,000, what is the impact of this transaction?
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