:confused: If the list price of delivery equipment is $55,000, and the trade in allowance is $20,000 the cost of the new truck would be recorded as??

I thought the answer would be $35,000 (cash paid) but that doesn't seem to be right.
Please Help!!

Unless you have to compute taxes or other fees, how could that answer be wrong?

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Originally Posted by padiva82

:confused: If the list price of delivery equipment is $55,000, and the trade in allowance is $20,000 the cost of the new truck would be recorded as???

I thought the answer would be $35,000 (cash paid) but that doesn't seem to be right.
Please Help!!!!

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Is there any amortization on the trade-in equipment?