Rory City traded in a used pickup for a new pickup with a sticker price of $44,000. The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000. The dealer took the old truck and $10,000 cash for the new truck.
-What amount of gain/loss should be reported in the general fund financial statements?

Question

Rory City traded in a used pickup for a new pickup with a sticker price of $44,000.  The old truck had a historical cost of $40,000, accumulated depreciation of $16,000, and a fair value of $27,000.  The dealer took the old truck and $10,000 cash for the new truck.  
-What amount of gain/loss should be reported in the general fund financial statements?

Quizplus · Accepted Answer

Gains or losses related to capital assets are not reported in the general fund financial statements because the general fund operates on a modified accrual basis, focusing on current financial resources and expenditures, not on gains or losses from capital assets.

Rory City Traded in a Used Pickup for a New