Exchange has commercial substance

Assignment Help Accounting Basics

Reference no: EM13149142

On December 2, 2011, Part Company, which operates a furniture rental business, traded in a used delivery truck with a carrying amount of $5,400 for a new delivery truck having a list price of $16,000 and paid a cash difference of $7,500 to the dealer. The used truck had a fair value of $6,000 on the date of the exchange. The exchange has commercial substance. At what amount should the new truck be recorded on Part's books?

a. $10,600

b. $12,900

c. $13,500

d. $16,000

Reference no: EM13149142

Questions Cloud

Interest rate rose over the same time period : What would happen to autonomous consumption if household debt fell and the interest rate rose over the same time period?

Define what pressure will the evolved carbon dioxide produce : What pressure will the evolved carbon dioxide produce when 184.5g of calcium carbonate decomposes in a 20.00L container at 22.4 deg celsius?

Ethanethiol is a compound with a disagreeable odor : Ethanethiol (C2H6S) is a compound with a disagreeable odor that can be used to impart an odor to natural gas. When ethanethiol is burned, the sulfur reacts with oxygen to form SO2

Determine the location of their facilities : How would each company determine the location of their facilities? List the specific needs and requirements of each company when determining location.

Exchange has commercial substance : The used truck had a fair value of $6,000 on the date of the exchange. The exchange has commercial substance. At what amount should the new truck be recorded on Part's books?

Interview a small business owner : Interview a small business owner and ask him or her about both the positive and the negative role of government in their business. Write a 2 page summary of your interview and include the questions you asked.

Identify and discuss two ways that a business could reduce : Aside from retail sales and marketing, identify and discuss two ways that a business could reduce costs or increase profits by using the Internet or Web applications.

Find judge appropriate to make scatter plot effective : Add titles and modify the default colors, fonts, etc., as you judge appropriate to make the scatter plot effective. (b) Describe the relationship (if any) between X and Y. Weak? Strong? Negative? Positive? Linear? Nonlinear?

Identify and explain the incentives for entrepreneurship : Identify and explain the incentives for entrepreneurship. Address why someone would willingly take the numerous risks associated with running a business. Also, discuss the major attributes necessary for a successful entrepreneur

User Account

All Pages