Multiple Choice
On January 1, 2013, DB purchased a used cement truck from NC. The carrying value of the truck on NC's books was $12,500. DB paid cash of $2,000 and gave a 2-year note that required semi-annual payments of $4,000 each payable at the end of each semi-annual period (the market rate of interest was 12 percent) . A similar truck reportedly was sold recently for $14,000. DB Company should record the cost of the truck as (rounded to the nearest dollar) :
A) $14,000
B) $15,860
C) $16,080
D) $17,000
Correct Answer:
Verified
Correct Answer:
Verified
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