Windsor Ltd traded a used truck(cost $31,700, accumulated depreciation $28,530, Fair value $1,370) for a new truck.
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Question:
Windsor Ltd traded a used truck(cost $31,700, accumulated depreciation $28,530, Fair value $1,370) for a new truck. Windsor did look up the value of its used truck and determined its fair value at the date of the trade is $1,370. The list price of the new trucks $37,070 and the trade-in allowance given on the trade was $4,540. 1 Windsor paid $32,530.
What should be the amount used as the cost of the new truck?
Prepare Windsor's entry to record the exchange.
Related Book For
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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