[linda268]

hello, i think that the cost of new car is 21000 x 1.2 = 25200 and the part exchange allowance is 25200 – 11900 = 13300
The carrying value of the old car is 17760 – 17760/4 x 3 = 4440, so the gain on sale of old car is 13300 – 4440 = 8860
Is my answer corect ?
Thank u!

[Author]

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