Reus Truck Company replaces the tires of its trucks. The new tires have a price of $127,000.
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Question:
Reus Truck Company replaces the tires of its trucks. The new tires have a price of $127,000. The old tires have an original cost of $144,000 and accumulated depreciation of $128,000. Reus gave the old tires and $111,000 cash for the new tires. What is the effect of the entry to record the replacement on total assets?
Multiple Choice
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Decrease of $17,000
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No effect
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Increase of $16,000
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Decrease of $11,000
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Increase of 111,000
Related Book For
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina
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