Ask Experts Questions for FREE Help !
Ask
    padiva82's Avatar
    padiva82 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 26, 2008, 09:52 AM
    Trade in allowance
    :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!!
    progunr's Avatar
    progunr Posts: 1,971, Reputation: 288
    Ultra Member
    		  
    #2

    Apr 26, 2008, 10:19 AM
    Unless you have to compute taxes or other fees, how could that answer be wrong?
    Capularis's Avatar
    Capularis Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 30, 2008, 11:45 AM
    Quote 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!!!!
    Is there any amortization on the trade-in equipment?
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Trade-In Allowance [ 1 Answers ]

Machinery acquired at a cost of $90,000 and on which there is accumulated depreciation of $50,000 (including depreciation for the current year to date) is exchanged for similar machinery. For financial reporting purposes, present entries to record the disposition of the old machinery and the...

Trade in allowance [ 1 Answers ]

Machinery acquired at a cost of $100,000 and on which there is accumulted depreciation of $60,000(including depreciation for the current year to date)is exchanged for similar machinery. For financial reporting purposes, present entries to record the dispositions of the old machinery and the...

View more questions Search