The Cutcut Mower Service owned a truck with an original cost of $70,000 on which there is accumulated depreciation of $60,000.The truck is exchanged for a new truck priced at $100,000 with a trade-in allowance of $16,000 and the balance in cash.
a.The book value of the old truck is ________.
b.The gain on the exchange is ________.
c.The cost basis in the new truck,assuming accounting rules is ________.

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The Answer of The Cutcut Mower Service owned a truck with an original cost of $70,000 on which there is accumulated depreciation of $60,000.The truck is exchanged for a new truck priced at $100,000 with a trade-in allowance of $16,000 and the balance in cash.
a.The book value of the old truck is ________.
b.The gain on the exchange is ________.
c.The cost basis in the new truck,assuming accounting rules is ________.

The Cutcut Mower Service Owned a Truck with an Original