Harrod's Landscape Artists acquired a new truck for $42,000 less the trade-in allowance of $4,000 for his old truck.The old truck was purchased for $31,000 and had a book value of $5,000 on the exchange date.The entry to record the acquisition of the new truck will include a debit to the Truck account for

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The cost of the new truck is $42,000 less the trade-in allowance of $4,000, which is $38,000. The old truck was purchased for $31,000 and had a book value of $5,000 on the exchange date, so the accumulated depreciation on the old truck is $26,000. The entry to record the acquisition of the new truck will include a debit to the Truck account for $38,000, a credit to the Accumulated Depreciation account for $26,000, and a credit to the Cash account for $12,000.

Harrod's Landscape Artists Acquired a New Truck for $42,000 Less