Natsuko Company traded an old forklift for a new forklift,receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash.The old forklift cost $39,000,and straight-line depreciation of $27,200 had been recorded to the date of trade under the assumption it would last 5 years and have a $5,000 residual value.At the date of trade,the fair value of the old forklift is $11,000,however the fair value of the new forklift is not known.(1)What was the book value of the old forklift?(2)At what amount should the new forklift be recorded?

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The Answer of Natsuko Company traded an old forklift for a new forklift,receiving a $10,500 trade-in allowance and paying the remaining $37,200 in cash.The old forklift cost $39,000,and straight-line depreciation of $27,200 had been recorded to the date of trade under the assumption it would last 5 years and have a $5,000 residual value.At the date of trade,the fair value of the old forklift is $11,000,however the fair value of the new forklift is not known.(1)What was the book value of the old forklift?(2)At what amount should the new forklift be recorded?

Natsuko Company Traded an Old Forklift for a New Forklift,receiving