Camp, Inc. exchanged an old truck that cost $30,000 now 50% depreciated) with a current fair value of $18,000 for equipment with an appraised value of $25,000. In addition, Camp paid cash of $6,000. At what value should Camp record the new equipment?

Question

Quizplus · Accepted Answer

The value of the new equipment is recorded at the fair value of the assets given up, which is the fair value of the old truck ($18,000) plus the cash paid ($6,000), totaling $24,000.

Camp, Inc Exchanged an Old Truck That Cost $30,000 Now 50