Trade-Ins
Dietz Owned a Delivery Van with a Book Value

Trade-ins
Dietz owned a delivery van with a book value of $2,000. It traded this old van in on a new one which cost $16,000. The dealer allowed Dietz a trade-in allowance of $3,500 on the old van, and Dietz paid the remainder in cash.
Compute the following:
$$\begin{array} { | l | l | } \hline \text { (a) The amount of cash Dietz must pay to purchase the new van } & \$\underline{\quad\quad} \\\hline \text { (b) The gain on disposal of the old van to be reported in Dietz 's } & \\\text { financial statements } & \$\underline{\quad\quad} \\\hline \text { (c) The gain on disposal of the old van to be reported in Dietz 's } \\\text { income tax return } & \$\underline{\quad\quad} \\\hline\end{array}$$