Discussion:Trade in vehicle

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Discussion Forum Index --> Accounting Questions --> Trade in vehicle


Gjw37 (talk|edits) said:

17 June 2013
Working with a client who has GAAP based financial statements on accrual basis of accounting.

Client traded in an old vehicle with a FMV of $5,000 and an un-depreciated balance of $1,875. The client purchased a new vehicle for $8,000 cash and a $40,000 loan (48,000 total price of new vehicle).

Assuming the gain on the old vehicle is material, do we record a gain for GAAP basis or do we reduce the basis of the new asset purchased? We are having conflicting opinions in the office on how to record for GAAP.

Podolin (talk|edits) said:

18 June 2013
http://www.nysscpa.org/cpajournal/2008/208/essentials/p38.htm

Discussion:Business Vehicle Trade-In

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