Henry Company traded in an old delivery truck for a new one. The old truck had a cost of $78,000 and accumulated depreciation of $44,000. The new truck had an invoice price of $122,000. Henry was given a $12,000 trade-in allowance on the old truck, which meant they paid $110,000 in addition to the old truck to acquire the new truck. What is the recorded value of the new truck

Respuesta :

Answer:

The new truck will enter the account with the invoice value.

new truck 122,000

ac dep old truck 44,000

loss on trade 22,000

Cash 110,000

Old Truck 78,000

Explanation:

Old truck 78,000

acc depreciation 44,000

net-book value 34,000

trade-in allowance 12,000

loss on trade 22,000

The new truck will enter the account with the invoice value.

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