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Bilboa Freightlines, S.A. of Panama has a small truck that it uses for...

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Accounting

Bilboa Freightlines, S.A. of Panama has a small truck that it uses for local deliveries. The truck is in bad repair and must be either overhauled or replaced with a new truck. The company has assembled the following information (Panama uses the U.S. dollar as its currency):
\table[[,\table[[Present],[Truck]],\table[[New],[Truck]]],[Purchase cost new,$44,000,$61,000
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