What amount of cash did mathews have to pay

Reference no: EM13127933

Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new bus cost $65,000, but Mathews was given a trade-in allowance of $10,000.

a. What amount of cash did Mathews have to pay to acquire the new bus?

b. Compute the gain or loss on the disposal for financial reporting purposes.

c. Explain how the gain or loss would be reported in the company's income statement.

Reference no: EM13127933

Questions Cloud

Calculate depreciation expense for year 2013 : A company acquired a new high-tech printing press on January 1, 2011, for $90,000. At that time, the company estimated the press would have a six-year life and salvage value of $6,000.

Determine the initial pressure of nitrogen : 2.00 L of H2 at a pressure of 368 torr and 1.00 L of N2 at an unknown pressure. If the total pressure in the flasks is 336 torr after the stopcock is opened.

Illustrate what is meant by standardized data : What is the manager’s responsibility in comparing data? What are the four common uses of comparative data? Illustrate what is meant by standardized data?

Establish an investment program : Two parents have decided to establish an investment program. They estimate it will cost $40,000 per year for four years. Their investment program will earn them 10 % over the years. How much do they have to deposit for a lump sum?

What amount of cash did mathews have to pay : Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000. Accumulated depreciation at the time of the trade-in amounted to $34,000. The new bus cost $65,000, but Mathews was given a trade-in allowance of..

Derivative of speed with respect to wind load : The lowest flying speed v (in ft/s) at which a certain airplane can fly varies directly as the square root of the wing load w (in lb per sq. ft). If V=88 ft/s when w= 16 lb/sq ft, find the derivative of v with respect to w.

Calculate the osmotic pressure in mm hg : calculate the osmotic pressure in mm Hg of 6.00 L of an aqueous 0.889 m solution at 30.°c, if the solute concerned is totally ionized into three ions

Explain why do some contracts have to be in writing : Explain Why do some contracts have to be in writing? Should you put in writing some contracts that are legally enforceable even if they are only oral?

Derivative of polynomial function : Explain how to calculate the derivative of a polynomial function and provide an example to illustrate your explanation.

User Account

All Pages