Trade-Ins
Dietz Owned a Delivery Van with a Book Value $\underline{\quad\quad}$

question 82

Essay

Trade-ins
Dietz owned a delivery van with a book value of $20,000. It traded this old van in on a new one which cost $160,000. The dealer allowed Dietz a trade-in allowance of $35,000 on the old van, and Dietz paid the remainder in cash.
Compute the following: (a) The amount of cash Dietz must pay to purchase the new van$ $\underline{\quad\quad}$
(b) The gain on disposal of the old van to be reported in Dietz's financial statements$ $\underline{\quad\quad}$
(c) The gain on disposal of the old van to be reported in Dietz 's income tax return$ $\underline{\quad\quad}$