ABC Company has a truck with cost of $60,000 and accumulated depreciation of $38,000. Very similar...
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ABC Company has a truck with cost of $60,000 and accumulated depreciation of $38,000. Very similar trucks regularly sell at a local vehicle auction for $20,000. However, when ABC projects the future cash flows likely to be generated by the truck, those projected future cash flows have a net present value of only $16,000.
What amount should ABC include in total assets for the truck?
$16,000
$38,000
$20,000
None of the other answer choices is correct.
$0
$22,000
$60,000
Homework Answers
Answer : $22000
Amount should ABC include in total assets for the truck :
= Cost - Depreciation
= $60000 - $38000
= $22000
Add Answer to:
ABC Company has a truck with cost of $60,000 and accumulated
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explanation very appreciated
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