During the current year, a company exchanged an old truck costing $58,000 with a

ID: 2579873 • Letter: D

Question

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 has commercial substance, in the journal entry to record the exchange, what amount will be debited or credited to the Cash account related to the old truck? (Be sure to only type in the amount. Do not include $, commas, or decimal points.)

Explanation / Answer

Amount credited to the Cash account related to the old truck 64000

Note: This amount is paid as a differential amount for exchange of new and old truck. So an alternative viewpoint can be 0 amount is paid for only old truck

Amount credited to the Cash account related to the old truck 64000

Note: This amount is paid as a differential amount for exchange of new and old truck. So an alternative viewpoint can be 0 amount is paid for only old truck

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During the current year, a company exchanged an old truck costing $58,000 with a

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