A company purchased a motor vehicle for $25000. Settlement was made by a payment of $22000 and
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A company purchased a motor vehicle for $25000. Settlement was made by a payment of $22000 and the part exchange of one of the company's own vehicles for $3000. The vehicle given in part exchange had a written down value of $7000, but had a re-sale value of $2000.
Which amount should be shown in the cash flow statement for the acquisition of the vehicle?
A. $22 000
B. $24 000
C. $25 000
D. $29 000
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In the cash flow statement for the acquisition of the vehicle you should consider the actual cash ou...View the full answer
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