Pike Ltd.bought a new delivery truck for its business.The truck sells for $75,000, because Pike bought a demonstrator model, they paid $65,000 only.While driving it home from the sales lot, the driver had an accident, and damages were estimated at $1,000.At what value should the truck be recorded on Pike's statement of financial position?
A)$64,000
B)$65,000
C)$66,000
D)$75,000

Question

Quizplus · Accepted Answer

The truck should be recorded at the purchase price of $65,000, which is the amount Pike Ltd. actually paid for the truck. The accident damage is a separate issue and does not affect the initial recorded cost of the asset.

Pike LtdBought a New Delivery Truck for Its Business