A Company Exchanged an Old Truck for a Newer Model

question 53

Essay

A company exchanged an old truck for a newer model.The old truck account had a cost of $76,000 and accumulated depreciation of $65,000 as of the exchange date.The new truck had a cash price of $84,000,but the company was given a $15,000 trade-in allowance and the balance of $69,000 was paid in cash.Prepare the journal entry to record the exchange.

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against risk and unforeseen losses.

Economic Forecasts

Predictions about future economic activity, including trends in GDP, inflation, employment, and sales.

Expected Value

The weighted average of all possible outcomes in a probability distribution, where each outcome is weighted by its probability of occurrence.

Novelty Cups

Cups designed with unique features or unusual designs, often used for promotional or gift purposes.