Beginning of 2020, XY acquired a fleet of trucks from YZ  for $100,000 cash. YZ. is wholly owned by the spouse of XY's CEO. The CEO's spouse owns 0% of XY, and the CEO owns 15% OF XY. The fleet of trucks was on YZ's books at a net book value of $75,000. The purchase was recorded based on the amount paid by XY. A similar fleet of trucks from another vendor would be worth $60,000. How do we account for this purchase?

Answer rating: 100% (QA)

The purchase of the fleet of trucks from YZ for 100000 cash should be reviewed for potential related ... View the full answer