Question 22 options: During the current year, a company exchanged an old truck c

Question

Question 22 options:

During the current year, a company exchanged an old truck costing $58,000 with accumulated depreciation of $52,000 for a new truck. The new truck had a cash price of $80,000 and the company received a trade-in allowance on the old truck with the balance of $64,000 paid in cash.

Assuming this transaction lacks commercial substance, in the journal entry to record the exchange, what will happen to the Accumulated Depreciation - Truck account related to the old truck- debit or credit?

What amount will be debited or credited to the Accumulated Depreciation - Truck account related to the old truck? (Be sure to only type in the amount. Do not include $, commas, or decimal points.)

Explanation / Answer

Accumulated Depreciation - Truck account will be debited for 52000

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