Mariano County traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $45,000, and accumulated depreciation of $18,000. The dealer took the old truck and $15,000 for the new truck.
-The amount of gain or loss that should be recognized on this transaction in the general fund financial statements is:

Question

Mariano County traded in a used pickup for a new pickup truck with a sticker price of $44,000.  The old pickup had a fair value of $26,000, historical cost of $45,000, and accumulated depreciation of $18,000.  The dealer took the old truck and $15,000 for the new truck.  
-The amount of gain or loss that should be recognized on this transaction in the general fund financial statements is:

Quizplus · Accepted Answer

The trade-in value of the old truck ($26,000) plus the cash paid ($15,000) equals the sticker price of the new truck ($44,000), resulting in no gain or loss.

Mariano County Traded in a Used Pickup for a New