Al's Advertising Company trades in a red vehicle which had originally cost the Company $22,000 for a
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Question:
Al's Advertising Company trades in a red vehicle which had originally cost the Company $22,000 for a blue vehicle which has a list price of $18,600. The net book value of the red vehicle is $19,000. The car dealership allows a $17,500 trade-in but Al's Advertising Company has to pay in $1,100 to make it a fair deal. The red vehicle being traded in could be sold, if it wasn't traded in, for $17,300 on the open market as a second-hand vehicle. What value should A's Advertising use to record the blue vehicle on their books?
Multiple Choice
$19,000
$17,300 sale price of red vehicle on the open market
$18,600 list price
$18,100
$18,400
Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
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