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8. The WTF company has a truck that was totalled when a flock of herons...

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Accounting

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8. The WTF company has a truck that was totalled when a flock of herons ran across the road and the driver slammed on the breaks and skidded into a farmers field and hit two cows and a turkey. They need to buy a new truck. The dealer will give them a $1,000 trade in value on the totalled truck if they agree to clean the turkey feathers out of the grill. They choose to buy a new truck which has a sticker price of $52,000. They pay $20,000 in cash and take out a note for the remaining amount they owe. The totalled truck was originally purchased for $32,000 and has accumulated depreciation of $30,000. Answer the following questions about this situation. BTW: The turkey lived...for now! Turkey's useful life ends November 28, 2013 a) What is the gain or loss on the trade-in of the totalled truck? b) What is the amount of the Note Payable? c) What is the amount the new truck will be recorded at? d) Produce the journal entry to record this transation Sheet1 Sheet2 Sheet3 te oa 9233 DOLL

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