Wynn Distributing Wants to Trade in Its Old Delivery Truck

Essay

Wynn Distributing wants to trade in its old delivery truck for a new one.The old truck is on the books at a cost of $84,500,and it has a carrying value of $19,300.The new truck has a list price of $108,700.Determine the gain or loss to be recognized on the disposal of the delivery truck,as well as the dollar amount recorded on the books for the new truck under each of the following situations:
(
A)the dealer has agreed to reduce the price of the new truck by $10,000 in exchange for the old truck
(b)the dealer has agreed to reduce the price of the new truck by $30,000 in exchange for the old truck