William hancock traded a delivery truck and 5000 cash for a, Ask an Expert

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William Hancock traded a delivery truck and $5000 cash for a newer van. This transaction has commericial substance.

Value of vans on exchange date
Old Van: Carrying Value- $30,000 Fair Value- $45,000
New Van: Carrying Value-$40,000 Fair Value-$50,000

William Hancock income tax rate is 30%. What amount should William report as gain on exchange of the vans?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9951948

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