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 government-wide 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 government-wide financial statements?

Quizplus · Accepted Answer

The government-wide financial statements report the economic resources of an entity and the claims to those resources. In this case, the government has a building that is worth $10,000. The government sells the building for $7,000. The government has a loss of $3,000 on the sale of the building. The loss should be reported in the government-wide financial statements.

Rory City Traded in a Used Pickup for a New