On December 2, 2011, Part Company, Which Operates a Furniture

question 36

Multiple Choice

On December 2, 2011, Part Company, which operates a furniture rental business, traded in a used delivery truck with a carrying amount of $5,400 for a new delivery truck having a list price of $16,000 and paid a cash difference of $7,500 to the dealer. The used truck had a fair value of $6,000 on the date of the exchange. The exchange has commercial substance. At what amount should the new truck be recorded on Part's books?

• A) $10,600
• B) $12,900
• C) $13,500
• D) $16,000

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Definitions:

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Behaviors

The actions, reactions, or conduct of an individual, group, or system, often analyzed in psychological or sociological contexts.

Cooperation

The action or process of working together to the same end, often by sharing knowledge or tasks.

Persuasion

Persuading an individual to adopt a belief or take an action based on logical argumentation or discourse.