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    Basis for a New Truck

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    Garnet, Inc., owns a delivery truck which initially cost $30,000. After depreciation of $15,000 had been deducted, the truck was traded-in on a new truck that cost $40,000. Garnet was required to pay the car dealer $20,000 in cash. What is Garnet's basis for the new truck?

    a. $0.

    b. $35,000.

    c. $40,000.

    d. $45,000.

    e. None of the above.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:27 pm ad1c9bdddf
    https://brainmass.com/business/depreciation/basis-new-truck-99294

    Solution Summary

    Quick calculations to find the basis for a new delivery truck after depreciation of the old one.

    $2.19

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