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.Wille Co. trades a used truck for a used car. The trade hasbeen decided...

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Accounting

.Wille Co. trades a used truck for a used car. The trade hasbeen decided to lack commercial substance. The used truck had anoriginal cost of $15,000 and accumulated depreciation of $7,500.The used truck has a fair value of $11,000. The car has a fairvalue of $9,000. In addition to the car, you receive $2,000.Calculate the amount of gain that will be recognized.

Answer & Explanation Solved by verified expert
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Solution:-

Truck - Original Cost is 15000

Accumulated Dep - 7500

Fair Value - 1100

Car Fair value - 9000

Cash received - 2000

Accumulated Depreciation (Truck ) - 7500

Cars -                                                9000

Cash -                                               2000

Gain                                                                                  3500

Truck                                                                               15000

Gain to be recorded 3,500
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In: Accounting.Wille Co. trades a used truck for a used car. The trade hasbeen decided to....Wille Co. trades a used truck for a used car. The trade hasbeen decided to lack commercial substance. The used truck had anoriginal cost of $15,000 and accumulated depreciation of $7,500.The used truck has a fair value of $11,000. The car has a fairvalue of $9,000. In addition to the car, you receive $2,000.Calculate the amount of gain that will be recognized.

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