Trade-ins
Dietz owned a delivery van with a book value of $20,000. It traded this old van in on a new one which cost $160,000. The dealer allowed Dietz a trade-in allowance of $35,000 on the old van, and Dietz paid the remainder in cash.
Compute the following: (a) The amount of cash Dietz must pay to purchase the new van$$\underline{\quad\quad}$
(b) The gain on disposal of the old van to be reported in Dietz's financial statements$$\underline{\quad\quad}$
(c) The gain on disposal of the old van to be reported in Dietz 's income tax return$$\underline{\quad\quad}$

Question

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The Answer of Trade-ins
Dietz owned a delivery van with a book value of $20,000. It traded this old van in on a new one which cost $160,000. The dealer allowed Dietz a trade-in allowance of $35,000 on the old van, and Dietz paid the remainder in cash.
Compute the following: (a) The amount of cash Dietz must pay to purchase the new van$$\underline{\quad\quad}$
(b) The gain on disposal of the old van to be reported in Dietz's financial statements$$\underline{\quad\quad}$
(c) The gain on disposal of the old van to be reported in Dietz 's income tax return$$\underline{\quad\quad}$

Trade-Ins Dietz Owned a Delivery Van with a Book Value ‾\underline{\quad\quad}​

Trade-Ins
Dietz Owned a Delivery Van with a Book Value $\underline{\quad\quad}$