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A Firm Trades in an Old Truck with a Fair

Question 121

Multiple Choice

A firm trades in an old truck with a fair value of $26,000 and a carrying value of $21,000 for new truck that has a list price of $33,000. To complete the transaction, the firm gives the dealer $4,000 cash. At what value will the firm record the new truck?


A) $4,000
B) $33,000
C) $30,000
D) $26,000

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