.Wille Co. trades a used truck for a used car. The trade has been decided to...

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

Expert Solution

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

ekkarill92 answered 1 year ago

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