Heyward Entity (HE) acquired a diesel truck on June 1, 20X7 for $75,000. HE paid $25,000 in cash and obtained a $50,000 loan from a local bank. On December 20, 20X7, HE sold this truck for $70,000 and repaid $50,000 owed to the bank. What is the exit price for the diesel truck? What is the exit price for the loan liability?

Question

Quizplus · Accepted Answer

The Answer of Heyward Entity (HE) acquired a diesel truck on June 1, 20X7 for $75,000. HE paid $25,000 in cash and obtained a $50,000 loan from a local bank. On December 20, 20X7, HE sold this truck for $70,000 and repaid $50,000 owed to the bank. What is the exit price for the diesel truck? What is the exit price for the loan liability?

Heyward Entity (HE) Acquired a Diesel Truck on June 1