Chapter 1
Recognition and Measurement
30
AP-11B (
6
)
Thompson Deliveries is a moving company with a fleet of 50 trucks. The corporation agreed
to purchase a new 2016 model D900 trailer to expand operations to long-distance container
hauling. The transaction was finalized with the following terms.
Thompson paid $5,000 cash and issued a note payable for $50,000.
Thompson provided the following three trucks in exchange for the trailer.
Reno 500 2009 model—Cost $50,000, accumulated depreciation $50,000,
fair value $10,000
Congi 3000 2012 model—Cost $40,000, accumulated depreciation $30,000,
fair value $20,000
Bonobo L20 2014 model—Cost $20,000, accumulated depreciation $5,000,
fair value $15,000
The manufacturer suggested retail price of the D900 is $110,000.
Determine what amount should be recorded in Thompson’s books for the purchase.
