Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 58

Willis Bus Service traded in a used bus for a new one.he original cost of the old bus was $52,000.ccumulated depreciation at the time of the trade-in amounted to $34,000.he new bus cost $67,000, but Mathews was given a trade-in allowance of $10,000.
a.hat amount of cash did Mathews have to pay to acquire the new bus
b.ompute the gain or loss on the disposal for financial reporting purposes.
c.xplain how the gain or loss would be reported in the company's income statement.