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On January 2, 2018, DCL Delivery Company traded in an old delivery truck for a newer model. Data relative to the old and new trucks follow:
Old Truck
Original cost......................................................... $18,000 Accumulated Depreciation at January 2, 2018 .... 12,000 Fair value ............................................................. 6,000
New Truck
List price .............................................................. $30,000 Cash price without trade-in .................................. 27,000 Cash paid with trade-in ........................................ 22,000
Problem 1: What is the cost of the new truck? Please include a brief explanation of this cost, and how you determined it.
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