Examlex

Solved

On December 1, 2010, Lear Company Acquired a New Delivery

question 63

Multiple Choice

On December 1, 2010, Lear Company acquired a new delivery truck in exchange for an old delivery truck that it had acquired in 2007.The old truck was purchased for $20,000 and had a book value of $7,600.On the date of the exchange, the old truck had a market value of $8,000.In addition, Lear paid $26,000 cash for the new truck, which had a list price of $36,000.At what amount should Lear record the new truck for financial accounting purposes?


Definitions:

Voluntary Risks

Risks that individuals knowingly and willingly choose to take, often after considering the potential benefits and dangers.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options that provide the best approach to achieving benefits while preserving savings.

Human Life

The existence, characteristics, and experience of being a person; often considered with respect to the moral, social, and philosophical aspects.

Cost-Benefit Analysis

An economic evaluation method that compares the costs and benefits of a project or decision to determine its feasibility or compare alternatives.

Related Questions