Headstrom Industries (HI)exchanged a three-year-old truck for a new truck that had a list price of $50,000,which was its fair value.The old truck originally cost $65,000 and has accumulated depreciation of $25,000 to the date of exchange.In addition to the $45,000 trade-in given for the old truck,HI paid $8,000 cash to complete the deal.

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The Answer of Headstrom Industries (HI)exchanged a three-year-old truck for a new truck that had a list price of $50,000,which was its fair value.The old truck originally cost $65,000 and has accumulated depreciation of $25,000 to the date of exchange.In addition to the $45,000 trade-in given for the old truck,HI paid $8,000 cash to complete the deal.

Headstrom Industries (HI)exchanged a Three-Year-Old Truck for a New Truck