A Firm Trades in an Old Truck with a Fair

question 121

Multiple Choice

A firm trades in an old truck with a fair value of $26,000 and a carrying value of $21,000 for new truck that has a list price of $33,000. To complete the transaction, the firm gives the dealer $4,000 cash. At what value will the firm record the new truck?

• A) $4,000
• B) $33,000
• C) $30,000
• D) $26,000

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Definitions:

Economic Welfare

The overall state of economic health and prosperity in a society, often measured by standards of living, income distribution, and availability of goods and services.

Chores

Routine tasks or duties, often related to maintaining a household or contributing to community work.

Nurturant

Characterized by providing nurturing care and support, often in the context of parenting or caregiving relationships.

Allocaregiving

The caregiving provided to a child by individuals other than their biological parents, involving relatives, community members, or childcare professionals.