Multiple Choice
Cliff Company traded in an old truck for a new one.The old truck had a cost of $75,000 and accumulated depreciation of $60,000.The new truck had an invoice price of $125,000.Huffington was given a $12,000 trade-in allowance on the old truck,which meant they paid $113,000 in addition to the old truck to acquire the new truck.If this transaction has commercial substance,what is the recorded value of the new truck?
A) $15,000
B) $75,000
C) $113,000
D) $125,000
E) $128,000
Correct Answer:
Verified
Correct Answer:
Verified
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