Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134078908
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.29E
Measuring asset cost, units-of-production
Pact Trucking Corporation uses the
When acquired in 2013, the rig cost $450,000 and was expected to remain in service for 10 years or 1,000,000 miles. Estimated residual value was $120,000. The truck was driven 82,000 miles in 2013, 122,000 miles in 2014, and 162,000 miles in 2015. After 39,000 miles, on March 15, 2016, the company traded in the Mack truck for a less expensive Freightliner. Pact also paid cash of $27,000. Fair market value of the Mack truck was equal to its net book value on me date of the trade.
Requirements
1. Record the
2. Determine Pact's Cost of me new truck.
3. Record the journal entry for the exchange of assets on March 15, 2016. Assume the exchange had commercial substance.
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Chapter 9 Solutions
Horngren's Financial & Managerial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (5th Edition)
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